Hf Foods Group (NASDAQ:HFFG) Announces Quarterly Earnings Results

Key Points

• Hf Foods Group exceeded quarterly expectations, reporting earnings of $0.12 per share versus the $0.06 consensus and revenue of $323.8 million, up 2.8% year over year and marking its sixth consecutive quarter of growth.
• Profitability remained pressured as gross margin fell to 17% and adjusted EBITDA declined 2% to $13.6 million, reflecting tariffs, fuel costs, weaker dine-in traffic and pricing concessions.
• The company agreed to acquire Canadian seafood distributor Searay Foods for approximately $35 million and expanded its credit facility, providing liquidity for the deal and future acquisitions; analysts’ consensus rating remains Hold with a $5.50 price target.

Hf Foods Group (NASDAQ:HFFG - Get Free Report) posted its quarterly earnings results on Monday. The company reported $0.12 earnings per share for the quarter, topping analysts' consensus estimates of $0.06 by $0.06, FiscalAI reports. The company had revenue of $323.78 million during the quarter, compared to the consensus estimate of $320.54 million. Hf Foods Group had a positive return on equity of 6.94% and a negative net margin of 2.90%.

Here are the key takeaways from Hf Foods Group's conference call:

• Revenue reached a record $323.8 million, up 2.8% year over year and marking the sixth consecutive quarter of growth, driven by volume gains and improved seafood pricing.
• Profitability remained under pressure, with gross margin declining to 17% and adjusted EBITDA falling 2% to $13.6 million as tariffs, fuel costs, softer dine-in traffic, and pricing concessions offset growth.
• HF Foods agreed to acquire Canadian seafood distributor Searay Foods for approximately $35 million, or about 5x baseline adjusted EBITDA; management expects the mid-teens-margin business to be immediately accretive to margins and EPS, subject to closing conditions.
• The company refinanced and expanded its credit facility, increasing revolver commitments to $140 million and extending maturities to 2031 and 2036, providing additional liquidity for the Searay deal and future acquisitions.
• Southeast seafood volumes are increasing, while Charlotte’s facility is expected to improve distribution efficiency in the fourth quarter; larger Midwest capacity benefits may not materialize until late 2026 or 2027.

Hf Foods Group Stock Performance

HFFG stock traded up $0.25 during midday trading on Tuesday, hitting $1.81. 1,372,719 shares of the company traded hands, compared to its average volume of 221,740. Hf Foods Group has a twelve month low of $1.38 and a twelve month high of $3.87. The stock has a market capitalization of $96.78 million, a price-to-earnings ratio of -2.66, a price-to-earnings-growth ratio of 0.43 and a beta of 0.58. The company has a quick ratio of 0.49, a current ratio of 1.11 and a debt-to-equity ratio of 0.59. The business has a 50 day simple moving average of $1.70 and a 200-day simple moving average of $1.84.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on HFFG shares. Roth Capital reaffirmed a "buy" rating on shares of Hf Foods Group in a research report on Wednesday, April 29th. Weiss Ratings downgraded shares of Hf Foods Group from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Thursday. Finally, Alliance Global Partners restated a "buy" rating on shares of Hf Foods Group in a research note on Thursday, July 23rd. Two investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $5.50.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of HFFG. Abel Hall LLC bought a new position in shares of Hf Foods Group in the fourth quarter worth about $26,000. Tower Research Capital LLC TRC lifted its holdings in shares of Hf Foods Group by 192.7% during the second quarter. Tower Research Capital LLC TRC now owns 12,450 shares of the company's stock worth $40,000 after buying an additional 8,197 shares during the last quarter. Virtu Financial LLC acquired a new stake in shares of Hf Foods Group in the third quarter worth $39,000. Invesco Ltd. raised its stake in Hf Foods Group by 37.1% during the 2nd quarter. Invesco Ltd. now owns 16,070 shares of the company's stock valued at $51,000 after purchasing an additional 4,351 shares during the last quarter. Finally, HRT Financial LP bought a new position in shares of Hf Foods Group during the 4th quarter worth about $40,000. Institutional investors own 24.02% of the company's stock.

Hf Foods Group Company Profile

HF Foods Group, Inc, together with its subsidiaries, manufactures, imports and distributes a variety of ethnic and specialty food products primarily for retail and foodservice customers in the United States. The company focuses on value‐added fresh and frozen offerings that cater to growing consumer interest in Hispanic and other global cuisines. Its vertically integrated operations include in‐house manufacturing, procurement of specialty ingredients, and third‐party distribution partnerships.

The company's product portfolio spans a broad range of categories, including fresh and frozen tamales, enchiladas, empanadas, tortillas and quesadillas, as well as shelf‐stable salsas, sauces, dips, spreads and snack items.

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