Helios Technologies, Inc. (HLIO) saw its stock price plummet 8.54% in after-hours trading on Monday, despite reporting third-quarter results that surpassed analyst expectations. The sharp decline suggests investors may be concerned about the company's future outlook or other factors beyond the headline numbers.
For the third quarter, Helios Technologies reported sales of $220.3 million, beating the IBES estimate of $211.3 million. The company's adjusted earnings per share (EPS) came in at $0.72, also surpassing the expected $0.66. Additionally, adjusted EBITDA reached $45.1 million, outperforming the estimated $42.6 million. However, the company's operating income was relatively low at $1.3 million, and the gross margin stood at 33.1%.
Looking ahead, Helios Technologies provided guidance for the full fiscal year, projecting consolidated revenue between $820-830 million and adjusted EPS in the range of $2.43-2.50. The company also expects an adjusted EBITDA margin of 19.1-19.4%. While these figures represent growth, investors may have been anticipating more robust projections, potentially explaining the stock's negative reaction. Market participants might also be concerned about the sustainability of the company's performance in the face of broader economic challenges.
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