NYSE$HLIO

Helios Technologies Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Helios Technologies reported sequential sales growth and strong margins.

Helios Technologies reported excellent quarterly results with total revenue exceeding expectations and expanding gross margins. The company generated $36.7 million in cash from operations and reduced net debt-to-Adjusted EBITDA to 2.0x.

  • Net sales grew $3.3 million sequentially to $122.6 million compared with trailing second quarter.
  • Electronics sales up 42% over trailing second quarter to $24.4 million.
  • Gross margin expanded 50 basis points over prior-year period to 38.3% on lower volume demonstrating improved operational efficiencies.
  • Generated $36.7 million of cash from operations and reduced net debt-to-Adjusted EBITDA to 2.0x.

Headline financials

Total Revenue

$123M

Previous: $138M-11.2%
EPS (adj)

$0.53

Previous: $0.61-13.1%
Operating income margin

14.9%

Previous: 13.8%+8.0%
Adjusted EBITDA Margin

23.4%

No prior period
Gross margin

38.3%

Previous: 37.8%+1.3%
Capital Expenditures

-$1.94M

Previous: -$4.17M+53.5%
Free Cash Flow

$11M

Previous: $8.62M+28.1%
Net Income

$13M

Previous: $12.8M+1.5%
Operating Income

$18.3M

Previous: $19.1M-4.2%
Gross Profit

$46.9M

Previous: $52.1M-9.9%
Cash & Equivalents

$32.4M

Previous: $13.7M+136.7%
Total Assets

$999M

Previous: $1.02B-2.1%

Revenue & EPS history

Helios · Revenue · Quarterly

$123M

Q3 2020-11.2%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Helios · $123M total across 2 segments · Q3 2020

  • Hydraulics
    $98.2M
  • Electronics
    $24.4M

Forward guidance

The Company expects revenue to range from $485 to $495 million for the full year 2020 and Adjusted EBITDA margin to be approximately 22% for the full year 2020.

Tailwinds

  • Revenue is expected to range from $485 to $495 million for the full year 2020.
  • Revenue expectations incorporate expectations of typical seasonality in the fourth quarter for the Electronics segment.
  • Revenue expectations incorporate recovering order levels for the Hydraulics segment.
  • Adjusted EBITDA margin is expected to be approximately 22% for the full year 2020.
  • The outlook does not include any contribution from the Acquisition.

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 Q3 2020

Historical avgQ3 2020

+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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