NASDAQ$HDSN

Hudson Technologies Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Hudson reported a decrease in revenue due to decreased selling prices, but achieved solid results driven by profitability and strong cash flow.

Hudson Technologies reported Q3 2023 results with revenues of $76.5 million, a 15% decrease compared to Q3 2022. Net income was $13.6 million, or $0.29 per diluted share. The company fully paid off its remaining $32.5 million of term loan debt during the quarter.

  • Revenue decreased by 15% to $76.5 million compared to the third quarter of 2022.
  • Gross margin was 40% compared to 49% in the prior year period.
  • Net income was $13.6 million, or $0.29 per diluted share, compared to $29.4 million, or $0.62 per diluted share in Q3 2022.
  • The company fully paid off its remaining $32.5 million of term loan debt during the third quarter of 2023.

Headline financials

Total Revenue

$76.5M

Previous: $89.5M-14.5%
EPS (adj)

$0.29

Previous: $0.56-48.2%
Gross Margin

40.0%

Previous: 49.0%-18.4%
Capital Expenditures

-$2.22M

Previous: -$1.72M-29.2%
Free Cash Flow

$11.4M

Previous: $27.6M-58.9%
Net Income

$13.6M

Previous: $29.4M-53.7%
Operating Income

$23.1M

Previous: $36.3M-36.3%
Gross Profit

$30.6M

Previous: $44.2M-30.9%
Cash & Equivalents

$3.78M

Previous: $15M-74.9%
Total Assets

$291M

Previous: $287M+1.7%
Stock-Based Comp

$242K

Previous: $247K-2.0%

Revenue & EPS history

Hudson · Revenue · Quarterly

$76.5M

Q3 2023-14.5%vs Q3 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

The industry is preparing for a mandated 40% reduction in baseline HFC production, effective at the start of 2024. The aggressive reduction in virgin HFC production is expected to meaningfully impact the supply landscape, creating enhanced demand for reclaimed refrigerant.

Tailwinds

  • The aggressive reduction in virgin HFC production is expected to meaningfully impact the supply landscape.
  • There will be enhanced demand for reclaimed refrigerant.
  • Hudson is uniquely positioned with its proprietary reclamation technology.
  • Hudson can meet the ongoing refrigerant needs of our customer base.
  • Hudson can assist the evolution to the next generation of cooling applications and refrigerants

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 Q3 2023

Historical avgQ3 2023

+1.5%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+7.6%

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%+3.8%
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 2010+7.6%
Q3 2011+7.6%
Q2 2011-9.5%
Q4 2010-9.5%
Q2 2010-9.5%
Q1 2010-1.6%

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