Motion control and electronic systems manufacturer Helios Technologies (NYSE:HLIO) will be announcing earnings results tomorrow after market close. Here’s what investors should know.

Helios missed analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $194.5 million, down 3.4% year on year. It was a slower quarter for the company, with full-year EBITDA and revenue guidance missing analysts’ expectations.

Is Helios a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Helios’s revenue to decline 8.3% year on year to $177.3 million, a further deceleration from the 1.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.35 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Helios has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Helios’s peers in the gas and liquid handling segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Standex delivered year-on-year revenue growth of 6.4%, beating analysts’ expectations by 0.5%, and Ingersoll Rand reported revenues up 4.2%, in line with consensus estimates. Standex traded down 2.2% following the results while Ingersoll Rand was also down 7.4%.

Read our full analysis of Standex’s results here and Ingersoll Rand’s results here.

Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the gas and liquid handling stocks have shown solid performance, the group has generally underperformed, with share prices down 6.2% on average over the last month. Helios is down 10.5% during the same time and is heading into earnings with an average analyst price target of $59.50 (compared to the current share price of $38.76).

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