Last week saw the newest quarterly earnings release from Helios Technologies, Inc. (NYSE:HLIO), an important milestone in the company's journey to build a stronger business. Helios Technologies reported US$232m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.66 beat expectations, being 8.7% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Following last week's earnings report, Helios Technologies' five analysts are forecasting 2026 revenues to be US$897.0m, approximately in line with the last 12 months. Statutory earnings per share are predicted to increase 8.8% to US$2.36. Before this earnings report, the analysts had been forecasting revenues of US$868.3m and earnings per share (EPS) of US$2.12 in 2026. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a nice increase in earnings per share in particular.

It will come as no surprise to learn that the analysts have increased their price target for Helios Technologies 7.0% to US$94.67on the back of these upgrades. 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$110 per share, while the most pessimistic values it at US$88.00. This is a very narrow spread of estimates, implying either that Helios Technologies is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2026. Historically, Helios Technologies' top line has shrunk approximately 0.2% annually over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.0% annually. Although Helios Technologies' revenues are expected to improve, it seems that it is still expected to grow slower than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Helios Technologies following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Helios Technologies going out to 2028, and you can see them free on our platform here.

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.