Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Hollysys Automation Technologies, Ltd.  jumped more than 10% during Tuesday's intraday trading, then settled to close up around 5% after the company turned in encouraging fiscal second quarter 2014 results.

So what: Quarterly revenue rose 75.9% year-over-year to $153.4 million, which translated to adjusted net income growth of 87.5% to $0.45 per share. By contrast, analysts were only expecting earnings of $0.27 per share on sales of $114.33 million. 


Now what: Going forward, Hollysys management also increased both the top and bottom ends of their fiscal year 2014 revenue guidance by $40 million to $500 million to $530 million. Analysts were only modeling fiscal 2014 revenue of $479.67 million.

In addition, Hollysys increased its 2014 net income guidance to a range of $84 million to $86 million, up from the previous range of $65 million to $69 million. 

As a result -- and putting aside the fact Hollysys has minimal debt and roughly $135 million in cash on its balance sheet -- shares look cheap trading at just 12.7 times this year's expected earnings. Even after today's pop, that's why I think Hollysys should still stand to reward patient long-term investors.

Consider the 9 solid high-yielding stocks in this free report
But that doesn't mean Hollysys is the only promising stock out there. So where else can you look?

Well, one of the dirty secrets that few finance professionals will openly admit is that dividend stocks as a group handily outperform their non-dividend-paying brethren. However, knowing this is only half the battle. The other half is identifying which dividend stocks in particular are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.

The article Why Hollysys Automation Technologies, Ltd. Shares Popped originally appeared on Fool.com.

Steve Symington has no position in any stocks mentioned. 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 don't 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.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Socially Responsible Investing

Invest in companies with a conscience.

View Course »

Bonds for Beginners

Learn about fixed income investments.

View Course »

Add a Comment

*0 / 3000 Character Maximum