What: Shares of blood analysis systems specialist Abaxis (NASDAQ:ABAX) sank 15.7% today after its quarterly results disappointed Wall Street.
So what: The stock has rallied nicely over the past year on strong earnings momentum, but today's wide second-quarter miss -- earnings of $0.14 per share on revenue of $43.2 million versus the consensus of $0.23 in EPS and $49.1 million in sales -- is triggering concerns over rapidly slowing growth. Of course, Abaxis remains financially strong, with more than $100 million in cash and marginal debt on the balance sheet, so Fools shouldn't get too worked up over the earnings hiccup.
Now what: Given the still-very low global penetration of portable blood analysis systems, this plunge could be an opportunity. "Overall, we are pleased with the progress being achieved and expect improved operational and financial results as we move through fiscal 2014 and beyond," said Chairman and CEO Clint Severson. More importantly, with the stock now off about 20% from its 52-week highs, Mr. Market might finally be providing a window to buy into that bullishness.