NYSE$HLIO

Helios Technologies Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Helios Technologies reported strong revenue growth in Q1 2023 while investing in augmented strategy for future growth.

Helios Technologies reported strong top-line results and delivered on gross margins in Q1 2023. The company is investing in optimizing its long-term cost structure and preparing for global growth, including opening new Centers of Excellence and reorganizing the Hydraulics segment. They also announced an agreement to acquire i3 Product Development.

  • Strong sequential top line growth over 4Q22 in both segments including a 36% increase in the health and wellness end market and sequential consolidated margin growth
  • Investing in operating expenses (SEA) to integrate flywheel acquisitions, open previously announced Centers of Excellence, and accelerate strategic growth opportunities
  • Protecting full year margin and earnings through execution of manufacturing and operating strategy
  • Achieved diluted EPS of $0.42; Diluted Non-GAAP Cash EPS of $0.72 reflecting in-period investments, higher interest expense ($0.06), and FX impact ($0.04) compared with prior year

Headline financials

Total Revenue

$213M

Previous: $241M-11.4%
EPS (adj)

$0.72

Previous: $1.18-39.0%
Capital Expenditures

-$9.1M

Previous: -$5.63M-61.6%
Free Cash Flow

$4.8M

Previous: $24.8M-80.7%
Net Income

$13.9M

Previous: $30.5M-54.4%
Operating Income

$24.8M

Previous: $42.9M-42.2%
Gross Profit

$71M

Previous: $83.6M-15.1%
Cash & Equivalents

$36.3M

Previous: $33M+9.9%
Total Assets

$1.56B

Previous: $1.43B+8.5%
Stock-Based Comp

$3.4M

Previous: $2.5M+36.0%

Revenue & EPS history

Helios · Revenue · Quarterly

$213M

Q1 2023-11.4%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Helios · $213M total across 2 segments · Q1 2023

  • Hydraulics
    $148M
  • Electronics
    $65.5M

Forward guidance

The company reiterates its outlook for 2023 revenue to be $910 to $940 million and is on path to achieve a strategic milestone of $1 billion in revenue on a run rate basis by year-end 2023. On a run-rate basis ending 2023, the Company expects to reach approximately $1 billion in revenue and approximately 25% Adjusted EBITDA margins.

Tailwinds

  • Reiterating outlook for 2023 revenue expected to be $910 to $940 million
  • On path to achieve strategic milestone of $1 billion in revenue on a run rate basis by year-end 2023
  • Expecting to reach approximately $1 billion in revenue on a run-rate basis ending 2023
  • Expecting approximately 25% Adjusted EBITDA margins on a run-rate basis ending 2023
  • Combined with our organic growth and other recent acquisitions, we expect to be able to reach our $1 billion revenue milestone with top-tier margins on a run-rate basis ending 2023

Headwinds

  • Foreign currency translation adjustment on sales was $3.5 million unfavorable
  • Supply chain constraints delayed an estimated $12.4 million in sales in the quarter
  • Rising interest rates
  • Average net debt balance increases related to acquisitions
  • The ongoing, though improving contraction of the health and wellness end market

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 2023

Historical avgQ1 2023

+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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