Fed’s Powell opens door to potential rate cuts at Jackson Hole
On Tuesday, Stifel analysts maintained their Buy rating and $60.00 price target for Helios Technologies (NYSE:HLIO), following the company’s fourth-quarter earnings report. With a market capitalization of $1.49 billion, Helios Technologies exceeded revenue expectations with a reported $179.5 million, compared to Stifel’s projection of $177.1 million and the general market consensus of $176.2 million. The adjusted earnings per share (EPS) came in at $0.33, which was below the market’s expectation of $0.35 but above Stifel’s estimate of $0.29. The EPS figure was notably affected by a tax rate higher than anticipated, which reduced earnings by $0.04 per share. According to InvestingPro data, the stock’s RSI suggests it’s currently in oversold territory, potentially presenting an opportunity for investors.
Looking ahead, Helios Technologies provided guidance for the year 2025, with revenue projections ranging between $775 million and $825 million. This forecast sits relatively close to Stifel’s own estimate of $787.8 million and the wider market prediction of $810.0 million. The company also anticipates an adjusted EBITDA margin between 18.0% and 20.0%, in line with both Stifel’s and the market’s expectation of 19.9%. For earnings per share in 2025, the company expects a range of $2.00 to $2.40, compared to Stifel’s forecast of $2.15 and the market consensus of $2.29. InvestingPro analysis shows the company has maintained dividend payments for 29 consecutive years, demonstrating consistent shareholder returns despite market fluctuations.
For the first quarter of 2025, Helios Technologies expects revenue to be between $185 million and $190 million, which is below the market expectation of $198.1 million. The EBITDA margin is projected to be between 16.0% and 17.0%, which is also lower than the market’s anticipated 18.6%.
Stifel’s commentary highlighted the solid performance of Helios Technologies in the fourth quarter of 2024 and noted that the company’s outlook, which brackets consensus expectations, is likely a positive sign given the weak markets. The firm also pointed out that the share repurchase authorization indicates confidence in the company’s cash flow. However, Stifel suggests that further deleveraging of the balance sheet would be preferable before executing share repurchases.
In other recent news, Helios Technologies Inc. reported its fourth-quarter 2024 earnings, revealing a mixed financial performance. The company missed analyst expectations with an earnings per share (EPS) of $0.33, falling short of the forecasted $0.41. However, Helios reported revenue of $179.5 million, surpassing estimates of $176.21 million. The company has also announced a $100 million share repurchase program, signaling confidence in its future performance. Despite a 4% decline in full-year sales to $806 million, Helios achieved a record free cash flow conversion rate of 244% and reduced total debt by $75 million. The company forecasts stronger performance in the latter half of 2025, driven by market improvements and new product developments. Helios also provided an optimistic sales projection for 2025, estimating revenue between $775 million and $825 million. The company continues to focus on operational efficiency and product innovation to mitigate challenges in weak market sectors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.