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Hudson Technologies Q3 revenue and EPS miss estimates on weak pricing, low demand

By Reuters News


Overview

  • US refrigerant products provider's Q3 revenue and EPS missed analyst expectations

  • Revenue declined on lower sales volume and 17% drop in pricing amid weak HFC market

  • Company ended Q3 debt-free with $35.3 mln in cash


Outlook

  • Company maintains full-year 2026 gross margin target in low-to-mid-twenty percent range

  • Hudson Technologies says it remains focused on core refrigerant sales, recovery and reclamation activities

  • Company plans to expand service offerings and reduce exposure to refrigerant pricing fluctuations


Result Drivers

  • WEAK MARKET PRICING - Co said Q3 revenue decline was driven by continued softness in HFC market pricing

  • LOWER SALES VOLUME - Co attributed Q3 revenue decline to reduced sales volume due to muted customer demand and adequate refrigerant inventories

  • HIGHER OPERATING COSTS - Co said increased operating costs, primarily fuel costs, contributed to lower gross margin


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$59.42 mln

$77.96 mln (4 Analysts)

Q3 EPS

Miss

$0.05

$0.12 (4 Analysts)

Q3 Net Income

$2.04 mln

Q3 Gross Margin

25%

Q3 Operating Income

$3.25 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the electrical components & equipment peer group is "buy"

  • Wall Street's median 12-month price target for Hudson Technologies Inc is $7.13, about 35.5% above its October 27 closing price of $5.26

  • The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 14 three months ago


Reuters Recommended Reads

  • Oct 27 - Enphase Energy Q3 results miss estimates on weak US, Europe demand

  • Oct 28 - Fortive Corporation beats Q3 revenue on innovation investments, raises FY outlook

  • Oct 27 - Engineered components maker Crane's Q3 sales beat, partly on acquisitions


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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