Helios Technologies Inc (HLIO) Reports Q3 2023 Financial Results Amid Changing Market Conditions
Helios Technologies Inc (NYSE:HLIO) reported Q3 2023 revenue of $201.4 million, reflecting the impact of swift changes in demand dynamics.
The company's net income stood at $3.5 million, with diluted EPS of $0.11.
Helios is investing in new customers and expanding end market opportunities to drive future volume and margins.
The company is updating its full-year outlook for 2023 and expects a slower start to 2024.
Helios Technologies Inc (NYSE:HLIO), a global leader in highly engineered motion control and electronic controls technology, released its financial results for the third quarter ended September 30, 2023, on November 2, 2023. The results include the company's recent acquisitions of Schultes Precision Manufacturing, Inc., and i3 Product Development, Inc.
Financial Performance
Helios reported a Q3 2023 revenue of $201.4 million, a decrease from $207.2 million in Q3 2022. The company's gross profit stood at $59.7 million, down from $69.3 million in the same period last year. The net income was $3.5 million, a significant decrease from $20.4 million in Q3 2022. The diluted EPS was $0.11, down from $0.63 in the same period last year.
We entered this year working to advance our strategy to solve our customers most challenging problems. However, we saw swift shifts in demand from a broad set of customers and markets in the third quarter. The combination of macroeconomic conditions and geopolitical unrest caused push outs on delivery schedules and delays in orders," said Helios President and Chief Executive Officer Josef Matosevic.
Segment Review
The Hydraulics segment saw a modest 1% improvement in revenue, offset by a 9% decline in the Electronics segment revenue compared to the year-ago period. The company also reported a 9% decline in sales in Europe, the Middle East, and Africa (EMEA), and a 4% decline in the Asia Pacific (APAC) compared to the same period last year.
Balance Sheet and Cash Flow
As of the end of Q3 2023, Helios had total debt of $544.5 million, down from $549.1 million at the end of the second quarter. The company's cash and cash equivalents stood at $35.2 million, relatively flat from the year-ago period of $36.8 million. Net cash provided by operations was $11.8 million in the third quarter 2023, compared with $26.1 million in the second quarter 2023.
Outlook for 2023
Helios is updating its full-year outlook for 2023 due to changes in customer behavior. The company expects a slower start to 2024 but remains confident in its strategy and its ability to grow shareholder value over time.
Explore the complete 8-K earnings release (here) from Helios Technologies Inc for further details.
This article first appeared on GuruFocus.
