US$57.80 - That's What Analysts Think Helios Technologies, Inc. (NYSE:HLIO) Is Worth After These Results

The annual results for Helios Technologies, Inc. (NYSE:HLIO) were released last week, making it a good time to revisit its performance. The result was positive overall - although revenues of US$836m were in line with what the analysts predicted, Helios Technologies surprised by delivering a statutory profit of US$1.14 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Helios Technologies

Following last week's earnings report, Helios Technologies' three analysts are forecasting 2024 revenues to be US$848.0m, approximately in line with the last 12 months. Statutory earnings per share are predicted to leap 44% to US$1.64. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$852.2m and earnings per share (EPS) of US$1.75 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 9.1% to US$57.80, suggesting the revised estimates are not indicative of a weaker long-term future for the business. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Helios Technologies analyst has a price target of US$66.00 per share, while the most pessimistic values it at US$50.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Helios Technologies' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 1.5% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.3% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Helios Technologies.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Helios Technologies. Long-term earnings power is much more important than next year's profits. We have forecasts for Helios Technologies going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Helios Technologies has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.

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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.