Helios Technologies, Inc. (NYSE:HLIO) Released Earnings Last Week And Analysts Lifted Their Price Target To US$57.80
The full-year results for Helios Technologies, Inc. (NYSE:HLIO) were released last week, making it a good time to revisit its performance. Helios Technologies reported US$836m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$1.14 beat expectations, being 4.3% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Helios Technologies
Following last week's earnings report, Helios Technologies' three analysts are forecasting 2024 revenues to be US$848.0m, approximately in line with the last 12 months. Per-share earnings are expected to bounce 44% to US$1.64. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$852.2m and earnings per share (EPS) of US$1.75 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
Despite cutting their earnings forecasts,the analysts have lifted their price target 9.1% to US$57.80, suggesting that these impacts are not expected to weigh on the stock's value in the long term. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Helios Technologies analyst has a price target of US$66.00 per share, while the most pessimistic values it at US$50.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Helios Technologies is an easy business to forecast or the the analysts are all using similar assumptions.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Helios Technologies' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 1.5% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.3% annually. Factoring in the forecast slowdown in growth, it seems obvious that Helios Technologies is also expected to grow slower than other industry participants.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Helios Technologies. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Helios Technologies' revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on Helios Technologies. Long-term earnings power is much more important than next year's profits. We have forecasts for Helios Technologies going out to 2026, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 2 warning signs for Helios Technologies you should be aware of, and 1 of them is a bit unpleasant.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
