Refrigerant services company Hudson Technologies (NASDAQ:HDSN) will be announcing earnings results this Wednesday after market hours. Here’s what to look for.
Hudson Technologies beat analysts’ revenue expectations last quarter, reporting revenues of $60.15 million, up 8.7% year on year. It was a mixed quarter for the company, with revenue guidance for next quarter slightly topping analysts’ expectations but a significant miss of analysts’ EPS estimates.
Is Hudson Technologies a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Hudson Technologies’s revenue to grow 1.9% year on year, a reversal from the 3.2% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Hudson Technologies has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Hudson Technologies’s peers in the specialty equipment distributors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 27.6%, beating analysts’ expectations by 19.6%, and Custom Truck One Source reported revenues up 10.2%, topping estimates by 8.8%. Richardson Electronics traded up 21.2% following the results.
Read our full analysis of Richardson Electronics’s results here and Custom Truck One Source’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the specialty equipment distributors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2% on average over the last month. Hudson Technologies is up 3.5% during the same time and is heading into earnings with an average analyst price target of $8.50 (compared to the current share price of $6.23).
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.