NASDAQ$HYFM

Hydrofarm Holdings Group Inc. · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Hydrofarm's financial performance remained flat, but profitability declined due to industry-wide agricultural oversupply and increased expenses.

Hydrofarm Holdings Group reported flat net sales and a net loss for the first quarter of 2022, impacted by agricultural oversupply and increased expenses related to acquisitions and distribution center relocation. The company updated its full-year outlook with net sales expected between $480 million and $520 million and adjusted EBITDA between $46 million and $54 million.

  • Net sales remained flat at $111.4 million compared to the prior year period.
  • Net loss was ($23.3) million, or ($0.52) per diluted share, compared to net income of $4.9 million, or $0.13 per diluted share.
  • Adjusted EBITDA decreased to $3.1 million compared to $9.9 million.
  • The company recorded a $3.2 million inventory reserve during the quarter.

Headline financials

Total Revenue

$111M

Previous: $111M-0.0%
EPS (adj)

-$0.17

Previous: $0.19-189.5%
Adjusted EBITDA

$3.1M

Previous: $9.9M-68.7%
SG&A expenses

$43M

No prior period
Gross Margin

14.9%

Previous: 20.8%-28.4%
Capital Expenditures

-$2.47M

Previous: -$428K-477.1%
Free Cash Flow

-$25.8M

Previous: $4.51M-671.1%
Net Income

-$23.3M

Previous: $4.94M-571.6%
Operating Income

-$26.4M

Previous: $6.38M-513.6%
Gross Profit

$16.6M

Previous: $23.2M-28.5%
Cash & Equivalents

$12.2M

Previous: $60.3M-79.8%
Total Assets

$881M

Previous: $283M+211.8%
Stock-Based Comp

$2.91M

Previous: $1M+190.5%

Revenue & EPS history

Hydrofarm · Revenue · Quarterly

$111M

Q1 2022-0%vs Q1 2021
Beat estimate in 6 of 9 quarters(67%)
ActualEstimate

Forward guidance

The Company is providing an update to its outlook for the full fiscal year 2022 with net sales of approximately $480 million to $520 million and Adjusted EBITDA of $46 million to $54 million.

Tailwinds

  • Sequential improvement from negative organic growth in Q1 to positive organic growth in Q4.

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 2022

Historical avgQ1 2022

-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

Earnings price reactions
QuarterReport dateReaction (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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