Motion control and electronic systems manufacturer Helios Technologies (NYSE: HLIO) will be reporting earnings tomorrow after market close. Here’s what to look for.
Helios beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $179.5 million, down 7.2% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates but full-year EBITDA guidance missing analysts’ expectations significantly.
Is Helios a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Helios’s revenue to decline 11.2% year on year to $188.4 million, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.36 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Helios has missed Wall Street’s revenue estimates twice over the last two years.
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. Flowserve delivered year-on-year revenue growth of 5.2%, beating analysts’ expectations by 3.6%, and Chart reported revenues up 5.3%, in line with consensus estimates. Flowserve’s stock price was unchanged after the results, while Chart was up 16.2%.
Read our full analysis of Flowserve’s results here and Chart’s results here.
There has been positive sentiment among investors in the gas and liquid handling segment, with share prices up 13% on average over the last month. Helios is up 8.1% during the same time and is heading into earnings with an average analyst price target of $53.25 (compared to the current share price of $28.16).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
