Helios Technologies, Inc. Just Recorded A 13% EPS Beat: Here's What Analysts Are Forecasting Next

Helios Technologies, Inc. (NYSE:HLIO) just released its latest second-quarter results and things are looking bullish. Helios Technologies beat earnings, with revenues hitting US$213m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 13%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, Helios Technologies' four analysts are now forecasting revenues of US$821.0m in 2025. This would be a satisfactory 5.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 27% to US$1.33. In the lead-up to this report, the analysts had been modelling revenues of US$784.6m and earnings per share (EPS) of US$1.11 in 2025. So it seems there's been a definite increase in optimism about Helios Technologies' future following the latest results, with a decent improvement in the earnings per share forecasts in particular.

View our latest analysis for Helios Technologies

With these upgrades, we're not surprised to see that the analysts have lifted their price target 23% to US$55.40per share. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Helios Technologies at US$73.00 per share, while the most bearish prices it at US$45.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Helios Technologies' growth to accelerate, with the forecast 10% annualised growth to the end of 2025 ranking favourably alongside historical growth of 6.4% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Helios Technologies to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Helios Technologies' earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Helios Technologies going out to 2027, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Helios Technologies (at least 1 which is potentially serious) , and understanding them should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.