Hudson Technologies (NASDAQ:HDSN) Announces Quarterly Earnings Results

Hudson Technologies (NASDAQ:HDSN) announced its quarterly earnings data on Wednesday. The industrial products company reported $0.01 EPS for the quarter, missing the consensus estimate of $0.05 by ($0.04), FiscalAI reports. The business had revenue of $60.15 million during the quarter, compared to the consensus estimate of $57.15 million. Hudson Technologies had a net margin of 6.76% and a return on equity of 7.88%.

Here are the key takeaways from Hudson Technologies’ conference call:

• Revenue grew 9% to $60.2M, beating prior guidance on stronger sales volume, firmer HFC prices and early-season warm weather.
• Gross margin fell to 20% (from 22%) and net income dropped to $0.3M, driven by a less favorable year?over?year sales mix and higher SG&A largely related to ERP and strategic initiatives.
• New ERP system is live and integrated; management expects continued optimization through the year with no major disruptions and improved decision-making from consolidated data.
• Signed licensing agreements to reclaim/resell next?generation HFO blends (e.g., R?448A/R?449A), offering a potential new revenue stream though reclamation volumes are still in early stages.
• Unlevered balance sheet with $19M cash and $2.5M of opportunistic share repurchases in Q1, while management remains open to M&A and continued buybacks.

Hudson Technologies Trading Down 19.0%

Shares of HDSN traded down $1.24 during midday trading on Thursday, reaching $5.30. 1,278,999 shares of the stock were exchanged, compared to its average volume of 304,653. Hudson Technologies has a 52 week low of $5.21 and a 52 week high of $10.52. The company’s 50 day moving average is $6.23 and its two-hundred day moving average is $7.01. The company has a market capitalization of $222.97 million, a P/E ratio of 14.72 and a beta of 0.87.

Wall Street Analyst Weigh In

HDSN has been the topic of several research analyst reports. Weiss Ratings downgraded Hudson Technologies from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, March 2nd. Roth Mkm cut their price objective on Hudson Technologies from $9.00 to $8.00 and set a “neutral” rating on the stock in a research report on Friday, March 6th. Canaccord Genuity Group set a $9.00 price objective on Hudson Technologies in a research report on Thursday. B. Riley Financial cut their price objective on Hudson Technologies from $10.50 to $9.50 and set a “buy” rating on the stock in a research report on Thursday, March 5th. Finally, Wall Street Zen downgraded Hudson Technologies from a “buy” rating to a “hold” rating in a research report on Saturday, March 21st. Two investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $8.88.

Hedge Funds Weigh In On Hudson Technologies

Hedge funds and other institutional investors have recently made changes to their positions in the company. Quantbot Technologies LP bought a new position in shares of Hudson Technologies during the 3rd quarter worth $158,000. Brandywine Global Investment Management LLC bought a new position in shares of Hudson Technologies during the 4th quarter worth $155,000. Creative Planning bought a new position in shares of Hudson Technologies during the 3rd quarter worth $143,000. EP Wealth Advisors LLC bought a new position in shares of Hudson Technologies during the 4th quarter worth $140,000. Finally, Brevan Howard Capital Management LP bought a new position in shares of Hudson Technologies during the 2nd quarter worth $139,000. Institutional investors own 71.34% of the company’s stock.

About Hudson Technologies

Hudson Technologies, Inc is a U.S.-based provider of refrigerant management and sustainability solutions, specializing in the recovery, reclamation and recycling of refrigerant gases. The company’s core business centers on collecting used refrigerants—such as CFCs, HCFCs and HFCs—from industrial, commercial and institutional customers, processing them in certified reclamation facilities and returning material that meets industry purity standards.

Headquartered in Purchase, New York, Hudson Technologies operates a network of reclamation centers across the continental United States.