Helios Technologies (HLIO) Tops Q4 EPS by 19c; Guides Above Views

Helios Technologies (NASDAQ: HLIO) reported Q4 EPS of $0.60, $0.19 better than the analyst estimate of $0.41. Revenue for the quarter came in at $151.6 million versus the consensus estimate of $139.84 million.

Josef Matosevic, the Company’s President and Chief Executive Officer, commented, “We ended the year on a strong note with all businesses exceeding our expectations in revenue and profitability. The Helios team worked extremely hard through a very challenging macro environment in 2020 and drove excellent results and superior shareholder return. We realized strong demand across a number of our markets, especially in agriculture, marine and health and wellness. The Balboa acquisition also exceeded our expectations in their first two months as part of the Helios family.

Over the last couple quarters, we have talked about diversifying our end markets. We are pleased to report that we have already won our first diversified markets customer with product offerings in the hydraulics segment and over time expanding into the electronics segment. We continue to pursue additional opportunities to diversify.”

He continued, “As we enter 2021, we are investing in expanding capacity as well as manufacturing and productivity improvements. Importantly, we are confident that we can keep driving growth and delivering improved margins over time. Our cash generation remains robust and we are focused on maintaining financial flexibility to support our flywheel acquisition strategy. In fact, we continued to de-lever our balance sheet. In the fourth quarter, we were able to pay down debt and achieve net leverage of 3.0x1, significantly better than anticipated at the time of the Balboa acquisition.”

GUIDANCE:

Helios Technologies sees FY2021 EPS of $2.75-$3.10, versus the consensus of $2.54. Helios Technologies sees FY2021 revenue of $675-705 million, versus the consensus of $664.46 million.

For earnings history and earnings-related data on Helios Technologies (HLIO) click here.

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