NYSE$HLIO

Helios Technologies Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Helios Technologies reported a decline in revenue due to shifting demand dynamics and macroeconomic conditions, impacting margins and resulting in lower net income and EPS.

Helios Technologies reported a decrease in revenue and profitability for Q3 2023. Revenue was $201.4 million, impacted by shifting demand dynamics, while net income decreased to $3.5 million, or $0.11 per share. The company is implementing cost control measures and remains focused on its long-term strategy.

  • Revenue of $201.4 million reflects impact of swift change in demand dynamics as evolving macroeconomic conditions influenced customer behavior with push out of orders and delivery dates
  • Margins impacted by lower volume and under absorption as well as a mix of products; new customers and expanding end market opportunities to build through 2024 to drive future volume and margins
  • Protecting margins by executing plans to control overhead expenses while continuing to advance low-cost operations and regional centers of excellence to gain further efficiencies
  • Strategy remains intact; looking beyond near-term challenges; well positioned with innovative products and software, expanded end markets, and regionalized capacity to drive longer-term growth

Headline financials

Total Revenue

$201M

Previous: $207M-2.8%
EPS (adj)

$0.44

Previous: $0.90-51.1%
Operating income margin

6.9%

No prior period
Adjusted EBITDA Margin

17.7%

Previous: 23.2%-23.7%
Gross margin

29.6%

No prior period
Capital Expenditures

-$5.8M

Previous: -$8.45M+31.4%
Free Cash Flow

-$2.3M

Previous: $11.9M-119.3%
Net Income

$3.5M

Previous: $20.4M-82.8%
Operating Income

$13.8M

Previous: $30.7M-55.1%
Gross Profit

$59.7M

Previous: $69.3M-13.8%
Cash & Equivalents

$35.2M

Previous: $36.8M-4.4%
Total Assets

$1.59B

Previous: $1.42B+12.0%
Stock-Based Comp

$2.7M

Previous: $1.84M+46.7%

Revenue & EPS history

Helios · Revenue · Quarterly

$201M

Q3 2023-2.8%vs Q3 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Helios · $201M total across 2 segments · Q3 2023

  • Hydraulics
    $132M+0.6%
  • Electronics
    $69.4M-8.7%

Forward guidance

Helios Technologies updated its full year 2023 outlook, expecting a slower start to 2024 due to changes in customer behavior, but remains confident in its strategy and long-term growth potential.

Tailwinds

  • Skilled enterprise
  • Great culture
  • Great team
  • Great future
  • Strong financial profile can deliver top tier margins and efficient cash flow generation

Headwinds

  • Change in customer behavior
  • Moderating outlook for the balance of the year
  • Impacted by the macroeconomic or the geopolitical environment
  • Slower start to 2024
  • Markets served are not further impacted by the macroeconomic or the geopolitical environment

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 2023

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro