Hudson Technologies (NASDAQ:HDSN) Issues Quarterly Earnings Results

Hudson Technologies (NASDAQ:HDSN) released its earnings results on Wednesday. The industrial products company reported $0.01 earnings per share for the quarter, missing analysts’ consensus estimates of $0.05 by ($0.04), FiscalAI reports. Hudson Technologies had a net margin of 5.66% and a return on equity of 6.87%. The company had revenue of $60.15 million for the quarter, compared to the consensus estimate of $57.15 million.

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 Price Performance

Shares of NASDAQ HDSN traded up $0.08 during mid-day trading on Friday, hitting $5.38. 200,964 shares of the stock traded hands, compared to its average volume of 302,935. Hudson Technologies has a twelve month low of $5.21 and a twelve month high of $10.52. The firm has a 50 day simple moving average of $6.19 and a two-hundred day simple moving average of $6.99. The company has a market cap of $226.13 million, a PE ratio of 17.34 and a beta of 0.87.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in HDSN. Quarry LP grew its stake in shares of Hudson Technologies by 51.9% in the third quarter. Quarry LP now owns 5,281 shares of the industrial products company’s stock worth $52,000 after purchasing an additional 1,805 shares during the last quarter. BNP Paribas Financial Markets raised its position in Hudson Technologies by 88.3% during the 3rd quarter. BNP Paribas Financial Markets now owns 7,530 shares of the industrial products company’s stock worth $75,000 after purchasing an additional 3,532 shares during the last quarter. Tower Research Capital LLC TRC lifted its holdings in Hudson Technologies by 177.6% during the 2nd quarter. Tower Research Capital LLC TRC now owns 8,715 shares of the industrial products company’s stock worth $71,000 after buying an additional 5,576 shares during the period. Kemnay Advisory Services Inc. bought a new stake in shares of Hudson Technologies in the 4th quarter valued at about $62,000. Finally, Mercer Global Advisors Inc. ADV acquired a new stake in shares of Hudson Technologies in the third quarter valued at about $132,000. Institutional investors own 71.34% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the stock. B. Riley Financial cut their price objective on shares of Hudson Technologies from $10.50 to $9.50 and set a “buy” rating for the company in a research report on Thursday, March 5th. Roth Mkm dropped their target price on shares of Hudson Technologies from $9.00 to $8.00 and set a “neutral” rating for the company in a research report on Friday, March 6th. Wall Street Zen downgraded shares of Hudson Technologies from a “buy” rating to a “hold” rating in a report on Saturday, March 21st. Weiss Ratings cut shares of Hudson Technologies from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, March 2nd. Finally, Canaccord Genuity Group lowered their price objective on shares of Hudson Technologies from $9.50 to $9.00 and set a “buy” rating for the company in a research report on Thursday. 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. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $8.88.

Hudson Technologies Company Profile

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.