NYSE$HLIO

Helios Technologies Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Helios Technologies reported financial results for Q4 2023, focusing on execution during market headwinds.

Helios Technologies reported Q4 2023 revenue of $193.4 million and net income of $3.3 million. The company focused on cost control and debt reduction, while facing macroeconomic and geopolitical challenges.

  • Delivered revenue and earnings in line with recent guidance, with revenue of $193.4 million in 4Q23.
  • Demonstrated disciplined cost control during 2H23, resulting in 4Q23 SEA expenses at the lowest quarterly level in FY23.
  • Generated strong cash from operations of $33.7 million in 4Q23.
  • Paid down $19.7 million of total debt in 4Q23.

Headline financials

Total Revenue

$193M

Previous: $196M-1.3%
EPS (adj)

$0.38

Previous: $0.78-51.3%
Operating income margin

6.2%

Previous: 10.6%-41.5%
Adjusted Operating Margin

12.6%

No prior period
Adjusted EBITDA Margin

16.7%

Previous: 20.0%-16.5%
Net Debt to Adjusted EBITDA

3

No prior period
Gross margin

28.6%

Previous: 32.2%-11.2%
Capital Expenditures

-$9.8M

Previous: $9.98M-198.2%
Net Income

$3.3M

Previous: $17.5M-81.1%
Operating Income

$11.9M

Previous: $20.7M-42.5%
Gross Profit

$55.3M

Previous: $63.2M-12.5%
Stock-Based Comp

$2.4M

Previous: $2.39M+0.5%

Revenue & EPS history

Helios · Revenue · Quarterly

$193M

Q4 2023-1.3%vs Q4 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Helios · $228M total across 2 segments · Q1 2026

  • Hydraulics
    $139M
  • Electronics
    $89.2M

Forward guidance

Helios Technologies provided its expectations for 2024, assuming constant currency and no further impact from macroeconomic or geopolitical environments. Revenue is expected to be between $840 to $860 million.

Tailwinds

  • Execute on profitable sales growth plan by realizing operating leverage inherent in our business, while fully instilling investment and cost discipline
  • Shorten our cash conversion cycle through sustainable working capital improvement initiatives
  • Reduce debt utilizing the free cash flow conversion proceeds
  • Renewed financial focus will elevate Helios to be the scalable, integrated operating Company
  • Strive for more predictable results in 2024

Headwinds

  • Markets served are impacted by the macroeconomic or the geopolitical environment
  • Global economic trends and changes in customer demand domestically and internationally
  • Supply chain disruption and the potential inability to procure goods
  • Conditions in the capital markets, including the interest rate environment and the availability of capital on terms acceptable
  • Global and regional economic and political conditions, including inflation (or hyperinflation) exchange rates, changes in the cost or availability of energy

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 Q4 2023

Historical avgQ4 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