Helios Technologies Intrinsic Value – Helios Technologies Reports Unexpected Earnings Miss and Revenue Beat

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Helios Technologies ($NYSE:HLIO), Inc. recently reported their third quarter financial results, and the news was met with a combination of surprise and disappointment. While their revenue of $213.2M surpassed expectations by $7M, their non-GAAP earnings per share (EPS) of $0.72 were $0.05 lower than what was anticipated. Helios Technologies is a leader in the design and manufacture of ultra-precision motion control components and systems. They provide advanced technologies, including motors, drives, generators, and motion control systems, to a diverse range of industries, such as medical equipment, semiconductor fabrication, and aerospace applications. Their products are designed to provide precision motion control and power in a range of motion profiles, while also being reliable and efficient. The company attributed the slight miss in their earnings to higher-than-expected operating expenses in their industrial markets segment.

In addition, higher discounts due to the competitive dynamics in the industrial market had an adverse impact on their gross margin. Overall, Helios Technologies reported a solid beat on revenue, but missed slightly on earnings per share. As they continue to expand their product portfolio and focus on customer satisfaction, they should be able to continue to improve their financial performance in the coming quarters.

Earnings

HELIOS TECHNOLOGIES recently released their earning report for FY2022 Q4 ending December 31 2022 and the results were both unexpected and mixed. The company reported a total revenue of 196.0M USD, a 10.0% decrease from the previous year. Additionally, the net income was 17.5M USD, a 25.7% decrease compared to the same period last year. Despite this, HELIOS TECHNOLOGIES’s total revenue has increased significantly over the last 3 years – from 151.62M USD to 196.0M USD.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Helios Technologies. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Helios Technologies. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Helios Technologies. More…

Key Ratios Snapshot

Some of the financial key ratios for Helios Technologies are shown below. More…

Market Price

On Monday, HELIOS TECHNOLOGIES reported unexpected earnings miss and revenue beat. Despite the earnings miss, shares of the company opened at $61.8 and closed at $62.2, up by 0.4% from prior closing price of 61.9. Despite this, investors remain optimistic as the company has delivered consistent growth in its top and bottom lines over the past few quarters. Live Quote…

Analysis – Helios Technologies Intrinsic Value

At GoodWhale, we recently conducted an analysis of the wellbeing of HELIOS TECHNOLOGIES and found that the company’s stock is currently undervalued. Our proprietary Valuation Line suggests a fair value of $74.7 for HELIOS TECHNOLOGIES’ share, however the stock is currently being traded at $62.2, representing a 16.7% undervaluation. More…

Peers

The company operates in a highly competitive market, competing with the likes of Aura Systems Inc, Scanfil PLC, and EnPro Industries Inc. These organizations are all well-established players in the industry, offering products and services that are designed to meet the needs of customers worldwide. Helios Technologies Inc strives to remain at the forefront of technology and engineering innovation, providing customers with reliable solutions to their needs.

– Aura Systems Inc ($OTCPK:AUSI)

Aura Systems Inc. is a leading manufacturer of mobile air conditioning systems and other related products. The company has a market capitalization of $23.22 million as of 2023, and has achieved a Return on Equity of 8.25%. This reflects Aura Systems’ solid financial performance and ability to generate value for shareholders. The company’s innovative products have allowed it to sustain its competitive advantage in the marketplace by providing reliable, efficient, and affordable solutions. This, combined with its experienced management team, has enabled Aura Systems to remain profitable and continue to grow.

– Scanfil PLC ($LTS:0Q59)

Scanfil PLC is a technology company that provides electronics manufacturing services for the industrial, telecommunications, automotive, healthcare, and energy industries. Their market capitalization of 416.41 million as of 2023 reflects their financial stability and long-term growth potential in the industry. The company’s Return on Equity of 11.92% is a measure of their profitability and ability to generate returns on investments, which suggests they are well managed and able to generate strong returns for their shareholders.

– EnPro Industries Inc ($NYSE:NPO)

EnPro Industries Inc is an industrial solutions provider for engineered components and parts that are used in a wide range of industries, from aerospace to automotive. The company’s current market cap of 2.29B as of 2023 reflects its impressive financial performance, with a Return on Equity of 11.29%. This ROE indicates that EnPro Industries Inc is able to effectively use its capital to generate profits, and its market cap suggests that investors are confident in the company’s future prospects.

Summary

Helios Technologies recently released its Non-GAAP earnings report, revealing a miss on analysts’ earnings per share (EPS) estimates by $0.05.

However, the company was able to beat revenue estimates by $7 million, with sales totaling $213.2 million. Investors should consider the overall results of this report in the context of Helios Technologies’ long-term performance. Analysts may want to look closer at the components of sales to better understand the underlying drivers of its performance. Likewise, investors should be aware of the potential rate of future returns offered by Helios Technologies as well as any industry-wide trends that could affect its bottom line.