NASDAQ$HYFM
Hydrofarm Holdings Group Inc. · Q1 2021 earnings
Q1 2021 earnings · · Investor relations
Briefing
Hydrofarm reported strong first-quarter results, driven by increased net sales and improved gross profit.
Hydrofarm Holdings Group reported a strong start to 2021 with net sales increasing by 66.5% to $111.4 million and a significant rise in adjusted EBITDA to $9.9 million. The company also completed a follow-on equity offering, raising approximately $309.8 million, and acquired branded nutrient manufacturer, HEAVY 16.
- Net sales increased by 66.5% to $111.4 million compared to the prior year period.
- Gross profit increased by 100.8% to $23.2 million, representing 20.8% of net sales.
- Net income attributable to common stockholders was $4.9 million, or $0.13 per diluted share, compared to a net loss of $3.7 million, or $0.18 per diluted share.
- Adjusted EBITDA increased to $9.9 million compared to $1.6 million in the prior year period.
Headline financials
Revenue & EPS history
Hydrofarm · Revenue · Quarterly
$111M
Forward guidance
Hydrofarm anticipates net sales growth between 30% and 40% and adjusted EBITDA of $36.0 million to $42.0 million for the full year 2021.
Tailwinds
- Net sales growth between 30% and 40%.
- Stronger growth in the first half of the year.
- Adjusted EBITDA of $36.0 million to $42.0 million.
- Full year margin expansion to approximately 8.1% to 8.9%.
- Expects to accelerate its growth plans, including potential future acquisitions, using the net proceeds from the recent equity offering and the future exercise of the Investor Warrants.
Headwinds
- Moderating growth in the second half of the year.
- Additional annual facility expenses of approximately $2.0 to $3.0 million.
- Capital expenditures of approximately $4.0 to $5.0 million.
- An effective tax rate of 12% to 16% of pre-tax book income.
- Uncertainties caused by the global COVID-19 pandemic.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 18 quarterly earnings reports · overlaid with Q1 2021
-2.6%
Avg return
Earnings day
-4.3%
Avg return
5 days after
-7.5%
Avg return
30 days after
38%
10 / 26 earnings
Positive
+16.2%
Q4 2020
Best reaction
-22.7%
Q2 2023
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q4 2025 | -0.9% | -1.8% | — | |
| Q1 2026 | -6.5% | -10.3% | -13.8% | |
| Q3 2025 | -14.6% | -21.9% | -3.0% | |
| Q2 2025 | -2.9% | +0.0% | -28.4% | |
| Q1 2025 | +8.0% | -1.9% | -0.9% | |
| Q4 2024 | -20.9% | -26.8% | -61.2% | |
| Q3 2024 | -4.9% | -2.7% | +13.8% | |
| Q2 2024 | +1.9% | +0.0% | +14.4% | |
| Q1 2024 | -3.7% | -10.2% | -14.2% | |
| Q4 2023 | +7.0% | -2.1% | +25.6% | |
| Q3 2023 | +4.4% | +0.0% | +25.9% | |
| Q2 2023 | -22.7% | -22.4% | -4.0% | |
| Q1 2023 | -8.7% | -15.0% | -22.6% | |
| Q4 2022 | +15.9% | +18.5% | -6.0% | |
| Q3 2022 | +8.2% | +19.7% | -1.7% | |
| Q2 2022 | +14.2% | +30.5% | +2.7% | |
| Q1 2022 | -20.8% | +1.9% | -34.3% | |
| Q4 2021 | -14.9% | -28.5% | -25.2% | |
| Q4 2019 | -14.9% | -28.5% | -25.2% | |
| Q3 2020 | -1.4% | -10.7% | -40.4% | |
| Q3 2021 | +12.3% | +10.8% | -28.2% | |
| Q2 2020 | -11.7% | -8.2% | +12.1% | |
| Q2 2021 | -5.6% | -16.6% | +5.7% | |
| Q1 2020 | +4.1% | +3.3% | +0.3% | |
| Q1 2021 | -3.6% | -0.3% | -4.7% | |
| Q4 2020 | +16.2% | +10.8% | +26.3% | |
| Q3 2019 | — | — | — | |
| Q2 2019 | — | — | — | |
| Q1 2019 | — | — | — |
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