NYSE$HLIO

Helios Technologies Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Helios Technologies' first quarter performance was driven by strong market leadership and an augmented strategy gaining traction.

Helios Technologies reported a strong first quarter with revenue growth of 58%, driven by high demand in agriculture, marine, and health & wellness markets. Net income reached $22.6 million, and diluted EPS was $0.70. The company is raising its revenue outlook for 2021, expecting strong margins despite supply chain challenges.

  • End markets outperformed expectations with record demand in agriculture, marine, and health & wellness.
  • The diversification strategy is yielding positive results with new customer acquisitions in emerging markets.
  • Capacity expansion and productivity improvements have enabled the company to meet demand and achieve record margins.
  • The company is quickly reducing its balance sheet leverage, decreasing the net debt to adjusted EBITDA ratio to 2.65x.

Headline financials

Total Revenue

$205M

Previous: $129M+58.2%
EPS (adj)

$0.99

Previous: $0.56+76.8%
Operating income margin

16.9%

No prior period
Adjusted EBITDA Margin

25.1%

Previous: 23.5%+6.8%
Gross margin

36.8%

Previous: 40.1%-8.2%
Capital Expenditures

-$5.04M

Previous: -$2.94M-71.5%
Free Cash Flow

$17.6M

Previous: -$20.2M+187.1%
Net Income

$22.6M

Previous: -$17.2M+231.1%
Operating Income

$34.6M

Previous: -$10M+444.9%
Gross Profit

$75.4M

Previous: $51.9M+45.4%
Cash & Equivalents

$25.9M

Previous: $27.3M-4.9%
Total Assets

$1.31B

Previous: $994M+32.0%

Revenue & EPS history

Helios · Revenue · Quarterly

$205M

Q1 2021+58.2%vs Q1 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Helios · $205M total across 2 segments · Q1 2021

  • Hydraulics
    $119M+14.7%
  • Electronics
    $85.7M+234.1%

Forward guidance

Helios Technologies raised its revenue outlook for 2021, driven by strong end market demand in the first quarter and expected to continue throughout the year. The company anticipates leveraging its fixed cost base and maintaining strong margins despite headwinds on material costs and logistics.

Tailwinds

  • Strong end market demand experienced in Q1 is expected to continue through 2021.
  • Ability to leverage the fixed cost base.
  • Maintenance of strong margins despite material cost and logistical headwinds.
  • Strategic price management to strengthen competitive advantages and gain market share.
  • Increase in revenue guidance for 2021 is driven by strong end market demand.

Headwinds

  • Headwinds from increasing material costs.
  • Supply chain constraints.
  • Higher freight expenses.
  • Potential impacts from the ongoing COVID-19 pandemic on supply chains and material costs.
  • Risks associated with integrating acquisitions, such as the Balboa acquisition, and retaining key personnel.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+1.1%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+0.9%

Avg return

30 days after

59%

37 / 63 earnings

Positive

+20.9%

Q3 2016

Best reaction

-23.8%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%+2.5%+17.3%
Q4 2025-3.8%-12.6%-9.6%
Q3 2025-1.6%-4.0%-4.3%
Q1 2025+6.5%+21.0%+19.2%
Q4 2024+7.1%+1.6%-12.3%
Q3 2024+14.9%+7.8%+7.2%
Q2 2024+5.4%+4.2%-0.8%
Q1 2024+6.8%+5.7%-2.5%
Q4 2023+7.3%-0.4%-2.2%
Q3 2023-13.7%-16.7%-21.9%
Q2 2023-12.4%-7.3%-7.0%
Q1 2023-7.6%-12.2%-2.0%
Q4 2022+2.6%+9.6%-1.9%
Q3 2022-10.8%-5.1%-6.0%
Q2 2022-12.1%+0.5%-19.5%
Q1 2022-4.4%-1.7%+5.6%
Q4 2021-4.4%-4.2%+2.0%
Q3 2021+16.0%+15.2%+8.0%
Q2 2021+4.0%+2.3%+3.5%
Q1 2021-0.2%+3.6%-3.7%
Q3 2020+7.0%+5.8%+17.3%
Q2 2020+4.6%+11.6%+12.8%
Q1 2020+2.2%+2.4%+9.4%
Q4 2019-0.2%-4.9%-15.2%
Q3 2019+11.4%+7.2%+4.4%
Q2 2019+2.2%-3.2%-5.9%
Q1 2019-9.7%-9.9%-10.7%
Q4 2018+20.8%+27.9%+16.7%
Q3 2018-23.8%-17.1%-18.9%
Q2 2018-4.3%-8.0%-2.5%
Q1 2018-0.2%-0.8%+4.5%
Q4 2017-5.1%-6.4%-5.8%
Q3 2017-1.9%-0.3%-1.7%
Q2 2017+13.9%+12.3%+21.6%
Q1 2017+5.9%+5.0%+5.4%
Q4 2016-4.8%-8.8%-7.4%
Q3 2016+20.9%+32.8%+34.4%
Q2 2016+1.6%+0.6%+6.6%
Q1 2016-10.9%
Q4 2015+7.3%
Q3 2015+0.1%
Q2 2015-3.7%
Q1 2015-4.9%
Q4 2014+2.4%
Q3 2014+6.7%
Q2 2014+4.8%
Q1 2014-6.4%
Q4 2013+0.1%
Q3 2013+3.8%
Q2 2013+0.6%
Q1 2013-1.3%
Q4 2011+2.3%
Q4 2012+12.5%
Q3 2012+1.6%
Q2 2012+0.1%
Q1 2012+2.1%
Q4 2010+1.3%
Q3 2011-3.1%
Q2 2011+3.2%
Q1 2011+3.2%
Q3 2010-1.8%
Q2 2010-9.6%
Q1 2010+15.3%

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