NASDAQ$HDSN

Hudson Technologies Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Hudson Technologies reported record first-quarter results driven by increased volumes and selling prices for refrigerants.

Hudson Technologies reported a strong start to 2022, with record first-quarter revenues of $84.3 million, a 149% increase compared to the previous year. The company's gross margin significantly improved to 54%, and operating income reached $38.3 million, compared to $1.7 million in the same period last year. With the current pricing trends, the company expects revenues in excess of $270 million in 2022.

  • Record first-quarter revenues of $84.3 million, a 149% increase year-over-year.
  • Gross margin increased to 54%, driven by higher selling prices of refrigerants.
  • Operating income reached $38.3 million, a substantial increase from $1.7 million in the prior year period.
  • Net income was $29.6 million, or $0.66 per basic share and $0.63 per diluted share, compared to a net loss of $1.1 million in the same period of 2021.

Headline financials

Total Revenue

$84.3M

Previous: $33.8M+149.7%
EPS (adj)

$0.63

Previous: -$0.02+3250.0%
Gross Margin

54.0%

Previous: 27.0%+100.0%
Capital Expenditures

-$27K

Previous: -$290K+90.7%
Free Cash Flow

$29.5M

Previous: -$1.37M+2261.6%
Net Income

$29.6M

Previous: -$1.08M+2846.7%
Operating Income

$38.3M

Previous: $1.69M+2163.5%
Gross Profit

$45.8M

Previous: $9.14M+401.4%
Cash & Equivalents

$5.15M

Previous: $2.78M+85.7%
Total Assets

$247M

Previous: $170M+45.6%
Stock-Based Comp

$403K

Previous: $361K+11.6%

Revenue & EPS history

Hudson · Revenue · Quarterly

$84.3M

Q1 2022+149.7%vs Q1 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

Hudson Technologies anticipates continued strong performance, potentially reaching longer-term targets faster than expected due to the AIM Act. While first-quarter gross margins were particularly strong, the company anticipates margin performance moderating to levels similar to last year but revenue to exceed $270 million.

Tailwinds

  • Expects to reach longer-term targets faster than originally expected.
  • Anticipates revenues in excess of $270 million in 2022.
  • Company is uniquely positioned to fill the anticipated HFC supply gap as virgin production is phased out.
  • The company expects to experience a significant inflection point for its business model and sustainable offerings starting in 2024.
  • Company is poised to continue to lead the industry’s orderly transition to greener, more environmentally-friendly refrigerants.

Headwinds

  • Margin performance for the full year will moderate to levels similar to that of last year.
  • Industry must comply with the AIM Act, which mandates a 10% stepdown in production and consumption allowances for virgin HFCs in both 2022 and 2023.
  • Net income during the first quarter of 2022 included $4.6 million of one-time interest expense associated with the refinancing of the Company’s term loan.
  • Changes in the laws and regulations affecting the industry could adversely affect the company.
  • Changes in the demand and price for refrigerants could adversely affect the company.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+1.5%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+7.7%

Avg return

30 days after

56%

36 / 64 earnings

Positive

+32.9%

Q4 2021

Best reaction

-26.2%

Q1 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.9%-6.3%
Q4 2025-10.6%-15.8%-17.7%
Q3 2025-6.2%-24.4%-15.8%
Q1 2025+16.1%+13.4%+6.6%
Q4 2024+3.4%+8.2%-2.9%
Q3 2024-20.2%-20.5%-18.6%
Q2 2024+5.9%+3.3%+6.1%
Q1 2024-8.3%-5.5%-10.2%
Q4 2023-17.6%-17.3%-24.7%
Q3 2023-4.4%-4.0%-1.7%
Q2 2023+18.1%+10.7%+30.4%
Q1 2023-0.4%+0.9%+19.6%
Q4 2022-9.5%-15.5%-17.7%
Q3 2022+11.3%+18.3%+25.1%
Q2 2022-5.3%-1.3%-12.9%
Q1 2022+30.0%+25.1%+42.5%
Q4 2021+32.9%+44.8%+60.4%
Q3 2021-0.8%+7.1%+4.4%
Q2 2021-12.3%-6.4%-8.4%
Q1 2021+9.9%+0.0%+56.2%
Q4 2020-6.2%-6.3%+15.3%
Q3 2020+1.9%+14.3%+50.5%
Q2 2020+1.8%+9.7%+1.8%
Q1 2020+3.7%+3.7%+10.0%
Q4 2019-2.3%-5.7%-20.7%
Q3 2019-9.0%-23.9%+9.0%
Q2 2019-13.3%-17.8%+55.6%
Q1 2019+25.9%+44.4%+18.5%
Q4 2018+22.3%+31.7%+48.9%
Q3 2018+7.6%-3.5%-35.1%
Q2 2018+1.6%+1.6%-3.3%
Q1 2018-26.2%-37.3%-44.5%
Q4 2017-9.6%-10.9%-24.1%
Q3 2017+6.2%+3.9%-5.7%
Q2 2017+15.3%+10.8%+13.7%
Q1 2017+1.9%+3.2%+21.6%
Q4 2016+1.8%-1.7%-7.8%
Q3 2016+10.9%+17.6%+37.4%
Q2 2016+2.5%-2.1%+29.8%
Q1 2016+2.3%
Q4 2015-2.3%
Q3 2015-10.5%
Q2 2015+4.9%
Q1 2015-2.8%
Q4 2014+7.7%
Q3 2014+3.3%
Q2 2014+0.7%
Q1 2014+5.9%
Q4 2013+3.3%
Q3 2013+13.3%
Q2 2013-14.5%
Q1 2013+5.7%
Q4 2012+11.9%
Q3 2012-2.3%
Q2 2012-20.2%
Q1 2011+29.4%
Q1 2012+2.1%
Q4 2011+4.4%
Q3 2011+7.6%
Q3 2010+7.6%
Q2 2011-9.5%
Q4 2010-9.5%
Q2 2010-9.5%
Q1 2010-1.6%

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