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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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