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Apr 03, 2021
Helios Q1 2021 Earnings Report
Helios Technologies' first quarter performance was driven by strong market leadership and an augmented strategy gaining traction.
Key Takeaways
Helios Technologies reported a strong first quarter with revenue growth of 58%, driven by high demand in agriculture, marine, and health & wellness markets. Net income reached $22.6 million, and diluted EPS was $0.70. The company is raising its revenue outlook for 2021, expecting strong margins despite supply chain challenges.
End markets outperformed expectations with record demand in agriculture, marine, and health & wellness.
The diversification strategy is yielding positive results with new customer acquisitions in emerging markets.
Capacity expansion and productivity improvements have enabled the company to meet demand and achieve record margins.
The company is quickly reducing its balance sheet leverage, decreasing the net debt to adjusted EBITDA ratio to 2.65x.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Helios Technologies raised its revenue outlook for 2021, driven by strong end market demand in the first quarter and expected to continue throughout the year. The company anticipates leveraging its fixed cost base and maintaining strong margins despite headwinds on material costs and logistics.
Positive Outlook
- Strong end market demand experienced in Q1 is expected to continue through 2021.
- Ability to leverage the fixed cost base.
- Maintenance of strong margins despite material cost and logistical headwinds.
- Strategic price management to strengthen competitive advantages and gain market share.
- Increase in revenue guidance for 2021 is driven by strong end market demand.
Challenges Ahead
- Headwinds from increasing material costs.
- Supply chain constraints.
- Higher freight expenses.
- Potential impacts from the ongoing COVID-19 pandemic on supply chains and material costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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