Hut 8 (NASDAQ:HUT) Releases Quarterly Earnings Results, Misses Expectations By $0.72 EPS

Hut 8 (NASDAQ:HUT) posted its quarterly earnings data on Tuesday. The company reported ($1.27) earnings per share for the quarter, missing the consensus estimate of ($0.55) by ($0.72), FiscalAI reports. The firm had revenue of $72.66 million for the quarter, compared to analyst estimates of $79.37 million. Hut 8 had a negative return on equity of 0.35% and a negative net margin of 109.77%.During the same period in the previous year, the business posted $1.18 EPS.

Here are the key takeaways from Hut 8’s conference call:

• Operating performance improved: Q2 revenue rose 81% year over year to $74.9 million, gross margin expanded to approximately 64%, and adjusted EBITDA excluding digital-asset mark-to-market movements increased to $10.4 million from $4.2 million.
• Hut 8 reported approximately 949 MW of contracted AI data-center capacity representing about $26.6 billion of expected base-term lease value, while Beacon Point Building Two added 352 MW and fully commercialized the campus’s 1 GW of utility capacity.
• The company raised $7.5 billion of investment-grade, non-recourse project financing for River Bend and Beacon Point, with Beacon Point receiving a higher rating, tighter pricing, and longer amortization than River Bend.
• Hut 8’s qualified development pipeline grew to approximately 8.7 GW across 11 sites, and management cited robust customer demand, increasing inbound M&A interest, and potential behind-the-meter generation as additional growth opportunities.
• Despite stronger operating results, Hut 8 posted a $177.1 million GAAP net loss, primarily due to a $138 million non-cash digital-asset loss; the company also faces substantial construction, execution, regulatory, and community-approval risks as it develops large campuses.

Hut 8 Trading Down 6.7%

Hut 8 stock traded down $7.47 during midday trading on Tuesday, hitting $104.61. 2,145,387 shares of the stock were exchanged, compared to its average volume of 4,786,083. The stock has a market capitalization of $11.78 billion, a PE ratio of -34.40 and a beta of 4.64. The company has a fifty day simple moving average of $111.97 and a two-hundred day simple moving average of $81.33. The company has a quick ratio of 0.86, a current ratio of 0.86 and a debt-to-equity ratio of 0.12. Hut 8 has a 52 week low of $18.68 and a 52 week high of $140.80.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. Citigroup reissued an “outperform” rating on shares of Hut 8 in a report on Tuesday, April 28th. Northland Securities set a $120.00 price objective on Hut 8 in a research report on Thursday, May 7th. Jefferies Financial Group began coverage on shares of Hut 8 in a research report on Thursday, May 14th. They set a “buy” rating and a $156.00 target price on the stock. Piper Sandler raised their price objective on shares of Hut 8 from $93.00 to $127.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Finally, Weiss Ratings lowered shares of Hut 8 from a “sell (d+)” rating to a “sell (d-)” rating in a report on Thursday, May 7th. Eighteen equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to MarketBeat.com, Hut 8 has an average rating of “Moderate Buy” and a consensus target price of $138.85.

Insider Activity

In other Hut 8 news, Director Joseph Flinn sold 7,719 shares of the business’s stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $117.91, for a total value of $910,147.29. Following the completion of the transaction, the director directly owned 10,519 shares of the company’s stock, valued at approximately $1,240,295.29. The trade was a 42.32% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Rick Rickertsen sold 17,491 shares of the stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $110.00, for a total transaction of $1,924,010.00. Following the sale, the director directly owned 17,491 shares of the company’s stock, valued at $1,924,010. This represents a 50.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 102,206 shares of company stock worth $11,376,242 in the last 90 days. Corporate insiders own 10.40% of the company’s stock.

Institutional Trading of Hut 8

A number of hedge funds and other institutional investors have recently modified their holdings of HUT. Abel Hall LLC acquired a new position in Hut 8 during the fourth quarter worth $217,000. Kestra Advisory Services LLC acquired a new stake in Hut 8 in the fourth quarter valued at $222,000. Rafferty Asset Management LLC bought a new position in shares of Hut 8 in the 4th quarter valued at about $226,000. Orion Porfolio Solutions LLC bought a new position in shares of Hut 8 in the 4th quarter valued at about $219,000. Finally, Meeder Asset Management Inc. acquired a new position in shares of Hut 8 during the 4th quarter worth about $215,000. Institutional investors and hedge funds own 31.75% of the company’s stock.

About Hut 8

Hut 8 Corp., trading on the Nasdaq under the symbol HUT, is a North American digital infrastructure company specializing in cryptocurrency mining and high?performance computing. Founded in 2017 and headquartered in Toronto, Canada, Hut 8 operates purpose?built data centers that house fleets of specialized ASIC and GPU servers. Through its flagship mining facilities in Alberta and Ontario, the company leverages low?cost, low?carbon power sources—such as hydroelectric and natural gas—to support sustainable bitcoin production.