Core Viewpoint - Helios Technologies reported quarterly earnings of $0.59 per share, exceeding the Zacks Consensus Estimate of $0.56 per share, and showing an increase from $0.44 per share a year ago [1][2]. Financial Performance - The earnings surprise for the quarter was 5.36%, with the company having surpassed consensus EPS estimates in all four of the last quarters [2]. - Revenues for the quarter ended September 2024 were $194.5 million, which missed the Zacks Consensus Estimate by 0.82% and decreased from $201.4 million year-over-year [3]. - The company has topped consensus revenue estimates three times over the last four quarters [3]. Stock Performance and Outlook - Helios Technologies shares have increased approximately 8% since the beginning of the year, compared to a 19.8% gain for the S&P 500 [4]. - The current consensus EPS estimate for the upcoming quarter is $0.57 on revenues of $198.85 million, and for the current fiscal year, it is $2.30 on revenues of $820.8 million [8]. Industry Context - The Manufacturing - General Industrial industry, to which Helios Technologies belongs, is currently ranked in the bottom 47% of over 250 Zacks industries, indicating potential challenges ahead [9]. - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Helios Technologies' stock performance [6].

Financial Performance - Generated $34.8 million in cash from operations, up 195% over the prior-year period, reflecting disciplined working capital initiatives[1] - Delivered net sales of $194.5 million in the quarter, a decrease of 3% compared to $201.4 million in the prior-year period[2] - Achieved diluted EPS of $0.34 in 3Q24, up 209% from $0.11 in the prior-year period, and diluted Non-GAAP EPS of $0.59, up 34% from $0.44[2] - Expanded gross margin by 150 basis points to 31.1%, driven by improved efficiencies and cost adjustments despite lower net sales[2] - Operating income surged by 61% to $22.2 million, compared to $13.8 million in the prior year, resulting in an operating margin of 11.4%[18] - Net income for the quarter was $11.4 million, a significant increase of 226% from $3.5 million in the same quarter last year[18] - Basic and diluted net income per share both reached $0.34, up 209% from $0.11 in the previous year[18] - Non-GAAP adjusted operating margin increased to 16.6%, up 290 basis points from the prior-year period[2] - Non-GAAP adjusted net income for Q3 2024 was $19.7 million, or $0.59 per diluted share, compared to $14.4 million, or $0.44 per diluted share in Q3 2023[29] Debt and Cash Management - Reduced total debt by $19.3 million, marking the fifth consecutive quarter of debt reduction, with a net debt leverage ratio improved to 2.8x from 3.0x[1] - Total debt decreased to $483.4 million, down 11% from $544.5 million at September 30, 2023[10] - Cash and cash equivalents increased to $46.7 million, up 33% compared to the same period last year[10] - The company reported a net debt of $436.7 million, with a net debt to TTM adjusted EBITDA ratio of 2.8[31] Operational Efficiency - Selling, engineering, and administrative expenses decreased by $7.3 million, or 19%, compared to the prior-year period[3] - Adjusted EBITDA margin expanded by 320 basis points to 20.9% compared to the prior-year period[3] - The company aims to protect margins through operational efficiencies and disciplined cost control amid challenging market conditions[11] - The company achieved operational efficiency and improved working capital management initiatives[25] - The company is focusing on operational efficiency and working capital management initiatives to enhance performance moving forward[27] Market Performance and Outlook - Sales in the APAC region grew 16%, while there was an 11% decline in the Americas and a 3% decline in EMEA compared to the prior-year period[2] - The company updated its 2024 outlook to reflect weaker end market conditions and hurricane impacts, while maintaining focus on operational efficiencies and cost discipline[1] - Total net sales outlook for 2024 was updated to $800 - $805 million, down from the previous outlook of $825 - $840 million[12] - Net income outlook for 2024 was revised to $40 - $42 million, compared to the previous range of $45 - $52 million[12] - Adjusted EBITDA margin for 2024 is expected to be between 19.0% and 19.6%, down from the previous range of 19.5% to 21.0%[12] Segment Performance - Hydraulics segment net sales for the nine months ended September 28, 2024, were $417.5 million, down from $432.1 million in the same period of 2023[21] - Electronics segment gross profit margin improved to 30.1% in Q3 2024, compared to 26.8% in Q3 2023[21] - The Americas segment contributed $334.2 million in year-to-date sales for 2024, down 5% compared to the previous year[25] - EMEA's consolidated sales for Q3 2024 were $43.2 million, a decrease of 3% year-over-year[25] - APAC's consolidated sales increased by 16% in Q3 2024, totaling $48.3 million[25] Capital Expenditures and Investments - Capital expenditures were $6.0 million in Q3 2024, representing 3.0% of sales[10] - The company reported a net cash used in investing activities of $22.1 million for the nine months ended September 28, 2024, significantly improved from $144.5 million in the same period of 2023[20] - Borrowings on long-term non-revolving debt amounted to $126.8 million in Q3 2024, compared to $160.0 million in Q3 2023[20] Dividends - The company paid its 111th consecutive quarterly cash dividend of $0.09 per share[10] - The company declared dividends of $0.09 per share, consistent with the previous quarter[18]

Core Viewpoint - Helios Technologies (HLIO) is expected to report a year-over-year increase in earnings and revenues for the quarter ended September 2024, with the consensus outlook being crucial for assessing the company's earnings picture [1] Earnings Expectations - The consensus EPS estimate for Helios Technologies is $0.56 per share, reflecting a year-over-year increase of +27.3% [3] - Expected revenues for the quarter are $205.1 million, which is an increase of 1.8% from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised 1.65% lower over the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for Helios is the same as the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, but the predictive power is significant only for positive readings [7] - Helios Technologies currently holds a Zacks Rank of 4, making it difficult to predict an earnings beat [10][11] Historical Performance - In the last reported quarter, Helios Technologies had an earnings surprise of +4.92%, reporting $0.64 per share against an expected $0.61 [12] - Over the last four quarters, the company has beaten consensus EPS estimates three times [13] Industry Comparison - Ingersoll Rand (IR), another player in the Zacks Manufacturing - General Industrial industry, is expected to post earnings of $0.82 per share, indicating a year-over-year change of +6.5% [17] - Ingersoll's revenues are expected to be $1.88 billion, up 7.9% from the previous year, with a higher Most Accurate Estimate leading to an Earnings ESP of 1.22% [18]

Not too long after I published the previous article on Helios Towers ( OTCPK:HTWSF ), the share price started to increase, ahead of its peers which gained momentum after the interest rates started to get cut. And while the other cell He is the leader of the investment group European Small Cap Ideas which offers exclusive access to actionable research on appealing Europe-focused investment opportunities not found elsewhere. The a focus is on highquality ideas in the small-cap space, with emphasis on capital ...

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES TORONTO, Aug. 09, 2024 (GLOBE NEWSWIRE) -- Helios Fairfax Partners Corporation (TSX: HFPC.U) today announced its financial results for the three and six months ended June 30, 2024. All dollar amounts in this news release are expressed in U.S. dollars except as otherwise noted. The financial results are derived from the interim consolidated financial statements prepared using the recognition and measurement requirements ...

Helios Technologies, Inc. (NYSE:HLIO) Q2 2024 Earnings Conference Call August 6, 2024 9:00 AM ET Company Participants Tania Almond - VP of IR and Corporate Communications Sean Bagan - Interim President, CEO and CFO Conference Call Participants David Tarantino - KeyBanc Capital Markets Adam Farley - Stifel Chris Moore - CJS Securities Jon Braatz - Oppenheimer Joseph Grabowski - Baird Operator Greetings, and welcome to the Helios Technologies Second Quarter 2024 Financial Results. [Operator Instructions] As a ...

Execute. Elevate. HELIOS TECHNOLOGIES (NYSE: HLIO) SECOND QUARTER 2024 EARNINGS SEAN BAGAN, INTERIM PRESIDENT, CEO & CFO | TANIA ALMOND, VP OF IR & CORPORATE COMMUNICATION August 6, 2024 SAFE HARBOR STATEMENT This presentation and oral statements made by management in connection herewith that are not historical facts are "forward‐looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward‐looking statements involve risks and uncertainties, and actual results may dif ...

Exhibit 99.1 NEWS RELEASE FOR IMMEDIATE RELEASE Helios Technologies Reports Second Quarter 2024 Financial Results; Delivers Continued Sequential Margin and Cash Flow Improvements • Delivered net sales of $219.9 million up 4% over 1Q24 with Hydraulics up 2% and Electronics up 7% • Demonstrated sequential margin improvement over 1Q24 across both gross (+40 bps) and operating (+220 bps) margins from improved volume, operational initiatives, and cost management • Achieved diluted EPS of $0.41 in 2Q24 and Dilute ...

The earnings report, which is expected to be released on August 5, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. Earnings Whisper Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. Please note that a negative Earnings ESP readin ...

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