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Helios' (HLIO) Shares Rise 26% in a Month: What's Driving It?
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Shares of Helios Technologies, Inc. (HLIO - Free Report) have gained 26.4% in the past month. The impressive gain mirrors the company’s solid fundamentals, sound financial performance and healthy growth opportunities. HLIO presently sports a Zacks Rank #1 (Strong Buy).
Helios provides products and solutions related to electronic controls and engineered motion control to a broad customer base in more than 90 countries. The end markets served by the company include recreational vehicles, agriculture, construction, energy, material handling, health and others. Helios is based in Sarasota, FL, and has a market capitalization of $3.6 billion.
The company belongs to the Zacks Manufacturing - General Industrial industry, which comes under the ambit of the Zacks Industrial Products sector. In the past month, the industry has gained 8.3%. The S&P 500 has soared 4.3% in the same period and the sector has risen 6.9%.
Image Source: Zacks Investment Research
Factors Influencing the Stock
In the past month, Helios has delivered impressive results for the third quarter of 2021, with an earnings beat of 30.49% and a sales surprise of 11.70%. On a year-over-year basis, the bottom line increased 102% from the year-ago quarter. Healthy sales growth and improvements in margins drove the company’s earnings performance.
In addition to the solid financial performance, Helios’ exposure in diversified end markets, impressive demand, product offerings, and operational flexibility are tailwinds for the quarters ahead. Investments in product innovations and building manufacturing capabilities are beneficial.
For 2022, Helios anticipates revenues of $840-$860 million, reflecting an increase (mid-point) of 4% from $800-$830 million mentioned previously. Adjusted earnings before interest, tax, depreciation and amortization are expected to be $197-$211 million, higher than $188-$203 million stated earlier. Supply-chain issues and inflationary pressures (related to raw material, logistics and freights) might offset the momentum partially. Non-GAAP earnings are anticipated to be $3.75-$4.10 per share, suggesting mid-point growth of 6% from $3.60-$3.80 discussed earlier.
Helios’ commitment to returning values to shareholders through dividend payments raises its appeal. Regarding buyout actions, HLIO’s acquired assets (including BWG Holdings I Corp. and NEM S.r.l.) boosted its sales by $63.8 million in the third quarter of 2021. Sales contributions from acquired assets were $180.2 million in the first three quarters of 2021. Such benefits from acquired assets are beneficial.
The Zacks Consensus Estimate for Helios’ earnings per share is pegged at $4.08 for 2021 and $4.47 for 2022, marking increases of 7.9% and 9.8% from the respective 30-day-ago figures. Also, the consensus estimate for the fourth quarter has increased 5.1% to 82 cents per share. Such upward revisions in earnings estimates reflect healthy operating conditions for the company.
Three other stocks from the industry are discussed below.
Welbilt, Inc.’s shares have gained 0.3% in the past month. WBT’s results delivered in the last quarter were better than expected, with earnings surpassing estimates by 40.00%.
In the past 30 days, the Zacks Consensus Estimate for Welbilt’s earnings has increased 3.2% for 2021 and 5.9% for 2022. The WBT stock presently carries a Zacks Rank #2 (Buy).
Shares of Dover Corporation (DOV - Free Report) have gained 5.9% in the past month. DOV’s performance in the last reported quarter was impressive, with an earnings beat of 7.03%.
In the past 30 days, the Zacks Consensus Estimate for Dover’s earnings has increased 1.5% for 2021 and 2.7% for 2022. The company presently carries a Zacks Rank #3 (Hold).
Standex International, Inc. (SXI - Free Report) has performed well in the past month, with shares rising 8.3%. SXI’s earnings beat in the last reported quarter was 3.88%.
In the past 60 days, the Zacks Consensus Estimate for Standex’s earnings has increased 1.8% for fiscal 2022 (ending June 2022) and 0.8% for fiscal 2023 (ending June 2023). The company presently carries a Zacks Rank #3.
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Helios' (HLIO) Shares Rise 26% in a Month: What's Driving It?
Shares of Helios Technologies, Inc. (HLIO - Free Report) have gained 26.4% in the past month. The impressive gain mirrors the company’s solid fundamentals, sound financial performance and healthy growth opportunities. HLIO presently sports a Zacks Rank #1 (Strong Buy).
Helios provides products and solutions related to electronic controls and engineered motion control to a broad customer base in more than 90 countries. The end markets served by the company include recreational vehicles, agriculture, construction, energy, material handling, health and others. Helios is based in Sarasota, FL, and has a market capitalization of $3.6 billion.
The company belongs to the Zacks Manufacturing - General Industrial industry, which comes under the ambit of the Zacks Industrial Products sector. In the past month, the industry has gained 8.3%. The S&P 500 has soared 4.3% in the same period and the sector has risen 6.9%.
Factors Influencing the Stock
In the past month, Helios has delivered impressive results for the third quarter of 2021, with an earnings beat of 30.49% and a sales surprise of 11.70%. On a year-over-year basis, the bottom line increased 102% from the year-ago quarter. Healthy sales growth and improvements in margins drove the company’s earnings performance.
In addition to the solid financial performance, Helios’ exposure in diversified end markets, impressive demand, product offerings, and operational flexibility are tailwinds for the quarters ahead. Investments in product innovations and building manufacturing capabilities are beneficial.
For 2022, Helios anticipates revenues of $840-$860 million, reflecting an increase (mid-point) of 4% from $800-$830 million mentioned previously. Adjusted earnings before interest, tax, depreciation and amortization are expected to be $197-$211 million, higher than $188-$203 million stated earlier. Supply-chain issues and inflationary pressures (related to raw material, logistics and freights) might offset the momentum partially. Non-GAAP earnings are anticipated to be $3.75-$4.10 per share, suggesting mid-point growth of 6% from $3.60-$3.80 discussed earlier.
Helios’ commitment to returning values to shareholders through dividend payments raises its appeal. Regarding buyout actions, HLIO’s acquired assets (including BWG Holdings I Corp. and NEM S.r.l.) boosted its sales by $63.8 million in the third quarter of 2021. Sales contributions from acquired assets were $180.2 million in the first three quarters of 2021. Such benefits from acquired assets are beneficial.
The Zacks Consensus Estimate for Helios’ earnings per share is pegged at $4.08 for 2021 and $4.47 for 2022, marking increases of 7.9% and 9.8% from the respective 30-day-ago figures. Also, the consensus estimate for the fourth quarter has increased 5.1% to 82 cents per share. Such upward revisions in earnings estimates reflect healthy operating conditions for the company.
Helios Technologies, Inc Price and Consensus
Helios Technologies, Inc price-consensus-chart | Helios Technologies, Inc Quote
Price Performance of Other Industry Players
Three other stocks from the industry are discussed below.
Welbilt, Inc.’s shares have gained 0.3% in the past month. WBT’s results delivered in the last quarter were better than expected, with earnings surpassing estimates by 40.00%.
In the past 30 days, the Zacks Consensus Estimate for Welbilt’s earnings has increased 3.2% for 2021 and 5.9% for 2022. The WBT stock presently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Dover Corporation (DOV - Free Report) have gained 5.9% in the past month. DOV’s performance in the last reported quarter was impressive, with an earnings beat of 7.03%.
In the past 30 days, the Zacks Consensus Estimate for Dover’s earnings has increased 1.5% for 2021 and 2.7% for 2022. The company presently carries a Zacks Rank #3 (Hold).
Standex International, Inc. (SXI - Free Report) has performed well in the past month, with shares rising 8.3%. SXI’s earnings beat in the last reported quarter was 3.88%.
In the past 60 days, the Zacks Consensus Estimate for Standex’s earnings has increased 1.8% for fiscal 2022 (ending June 2022) and 0.8% for fiscal 2023 (ending June 2023). The company presently carries a Zacks Rank #3.