Helios Technologies, Inc. (HLIO) saw its stock price plummet 8.54% in after-hours trading on Monday, despite reporting third-quarter results that exceeded analyst expectations. The sharp decline suggests investors may be concerned about the company's future prospects, even as it posted solid numbers for the most recent quarter.
For Q3, Helios Technologies reported adjusted earnings per share of $0.72, surpassing the IBES estimate of $0.66. Sales came in at $220.3 million, also beating the expected $211.3 million. The company's adjusted EBITDA reached $45.1 million, outperforming the estimate of $42.6 million. However, operating income was relatively low at $1.3 million, with a net income of $10.3 million. The gross margin for the quarter stood at 33.1%.
Looking ahead, Helios Technologies provided guidance for the full year, projecting adjusted earnings per share between $2.43 and $2.50. The company expects consolidated revenue in the range of $820-830 million, with an adjusted EBITDA margin of 19.1-19.4%. Despite beating Q3 estimates, the significant stock drop might indicate that investors were anticipating more robust future guidance or are concerned about the company's ability to maintain its performance in a challenging economic environment. The relatively low operating income in Q3 could also be a point of concern for investors, potentially signaling operational challenges that may impact future profitability.
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