Motion control and electronic systems manufacturer Helios Technologies (NYSE: HLIO) will be reporting earnings this Monday afternoon. Here’s what to expect.
Helios beat analysts’ revenue expectations last quarter, reporting revenues of $210.7 million, up 17.4% year on year. It was a very strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ adjusted operating income estimates.
Is Helios a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Helios’s revenue to grow 12.7% year on year, a reversal from the 7.8% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Helios rarely misses Wall Street’s revenue estimates.
Looking at Helios’s peers in the gas and liquid handling segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Gorman-Rupp delivered year-on-year revenue growth of 7.7%, beating analysts’ expectations by 3.5%, and ITT reported revenues up 32.7%, topping estimates by 9.8%. Gorman-Rupp traded up 16% following the results while ITT was down 2.3%.
Read our full analysis of Gorman-Rupp’s results here and ITT’s results here.
There has been positive sentiment among investors in the gas and liquid handling segment, with share prices up 5% on average over the last month. Helios is down 4.1% during the same time and is heading into earnings with an average analyst price target of $80.17 (compared to the current share price of $68.21).
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