HollySys Automation Technologies
The 10-second takeaway
For the quarter ended Dec. 31 (Q2), HollySys Automation Technologies whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share shrank significantly. GAAP earnings per share dropped significantly.
Margins dropped across the board.
HollySys Automation Technologies reported revenue of $87.2 million. The one analyst polled by S&P Capital IQ predicted revenue of $101.6 million on the same basis. GAAP reported sales were 8.6% higher than the prior-year quarter's $80.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.24. The one earnings estimate compiled by S&P Capital IQ forecast $0.28 per share. Non-GAAP EPS of $0.24 for Q2 were 33% lower than the prior-year quarter's $0.36 per share. GAAP EPS of $0.23 for Q2 were 36% lower than the prior-year quarter's $0.36 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 32.1%, 640 basis points worse than the prior-year quarter. Operating margin was 16.3%, 1,090 basis points worse than the prior-year quarter. Net margin was 15.0%, 1,020 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $72.2 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $388.9 million. The average EPS estimate is $1.09.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 56 members out of 79 rating the stock outperform, and 23 members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give HollySys Automation Technologies a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HollySys Automation Technologies is outperform, with an average price target of $12.68.
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