Helios Technologies (HLIO) Earnings Preview: Revenue Expectations, Key Metrics to Watch

Helios Technologies (HLIO) is set to report Q2 earnings on Monday. Analysts expect revenue to decline 8.4% YoY to $201.5 million and adjusted earnings of $0.50 per share. The company beat revenue expectations by 3.8% last quarter, but the gas and liquid handling segment has seen mixed results from peers Gorman-Rupp and Standex. Helios's stock price is flat over the last month and has an average analyst price target of $45.20.

Helios Technologies (HLIO), a motion control and electronic systems manufacturer, is set to report its Q2 earnings on Monday. Analysts expect revenue to decline 8.4% year-over-year (YoY) to $201.5 million, with adjusted earnings of $0.50 per share [1]. Despite this expected decline, Helios beat revenue expectations by 3.8% last quarter, reporting revenues of $195.5 million, down 7.8% YoY [1].

In the gas and liquid handling segment, peers Gorman-Rupp and Standex have reported mixed results. Gorman-Rupp delivered year-on-year revenue growth of 5.6%, beating analysts’ expectations by 2.5%, while Standex reported revenues up 23.2%, topping estimates by 3.5% [1]. Despite these mixed results, investors in the segment have had steady hands, with share prices flat over the last month. Helios's stock price has also been unchanged during this period and is heading into earnings with an average analyst price target of $45.20, compared to the current share price of $35.43 [1].

The company has missed Wall Street’s revenue estimates twice over the last two years. However, analysts have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings [1]. The consensus EPS estimate for the quarter has been revised 6.38% higher over the last 30 days, reflecting analysts' reassessment of their initial estimates [2].

Helios Technologies has beaten consensus EPS estimates four times over the last four quarters. However, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [2]. This makes it difficult to conclusively predict that Helios Technologies will beat the consensus EPS estimate. Nevertheless, investors should pay attention to other factors as well for betting on this stock or staying away from it ahead of its earnings release.

References:
[1] https://ca.finance.yahoo.com/news/helios-hlio-reports-earnings-tomorrow-030744673.html
[2] https://finance.yahoo.com/news/analysts-estimate-helios-technologies-hlio-140012396.html