Hudson Technologies (NASDAQ:HDSN) Issues Quarterly Earnings Results

Key Points

• Hudson reported an EPS of $0.01 vs. the consensus $0.05 (a miss) even as revenue rose 9% to $60.2M, with gross margin sliding to 20% and net income falling to about $0.3M due to a weaker sales mix and higher SG&A.
• Management said the new ERP is live and expects ongoing optimization, signed licensing agreements to reclaim next‑generation HFO blends as a potential new revenue stream, and highlighted an unlevered balance sheet with $19M cash while conducting opportunistic buybacks and remaining open to M&A.
• Shares jumped roughly 4% to $6.54 after the release, and analysts’ consensus is a Hold rating with an average price target of $9.00.

Hudson Technologies (NASDAQ:HDSN - Get Free Report) released its quarterly earnings data on Wednesday. The industrial products company reported $0.01 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.05 by ($0.04), FiscalAI reports. The company had revenue of $60.15 million during the quarter, compared to analysts' expectations 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 Stock Up 4.0%

Shares of NASDAQ HDSN traded up $0.25 during trading hours on Wednesday, hitting $6.54. 372,696 shares of the stock were exchanged, compared to its average volume of 242,153. The company has a market cap of $275.14 million, a PE ratio of 18.17 and a beta of 0.87. The firm has a fifty day moving average price of $6.23 and a 200-day moving average price of $7.01. Hudson Technologies has a 12 month low of $5.62 and a 12 month high of $10.52.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Brandywine Global Investment Management LLC bought a new position in shares of Hudson Technologies during the 4th quarter worth approximately $155,000. Creative Planning bought a new position in shares of Hudson Technologies during the 3rd quarter worth approximately $143,000. EP Wealth Advisors LLC bought a new position in shares of Hudson Technologies during the 4th quarter worth approximately $140,000. Brevan Howard Capital Management LP bought a new position in shares of Hudson Technologies during the 2nd quarter worth approximately $139,000. Finally, Mercer Global Advisors Inc. ADV bought a new position in shares of Hudson Technologies during the 3rd quarter worth approximately $132,000. Institutional investors own 71.34% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on HDSN. Wall Street Zen lowered shares of Hudson Technologies from a "buy" rating to a "hold" rating in a report on Saturday, March 21st. B. Riley Financial reduced their price target on shares of Hudson Technologies from $10.50 to $9.50 and set a "buy" rating for the company in a report on Thursday, March 5th. Weiss Ratings lowered shares of Hudson Technologies from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday, March 2nd. Roth Mkm reduced their price target on shares of Hudson Technologies from $9.00 to $8.00 and set a "neutral" rating for the company in a report on Friday, March 6th. Finally, Canaccord Genuity Group reduced their price target on shares of Hudson Technologies from $10.00 to $9.50 and set a "buy" rating for the company in a report on Friday, March 6th. Two research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Hudson Technologies presently has an average rating of "Hold" and an average target price of $9.00.

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.

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