NASDAQ$HYFM
Hydrofarm Holdings Group Inc. · Q2 2021 earnings
Q2 2021 earnings · · Investor relations
Briefing
Hydrofarm's financial performance improved significantly in the second quarter of 2021, marked by substantial revenue growth, enhanced profitability, and strategic acquisitions.
Hydrofarm Holdings Group reported a strong second quarter in 2021, with net sales increasing by 46.7% to $133.8 million and adjusted EBITDA more than doubling to $16.2 million. The company completed two acquisitions during the quarter and revised its full-year outlook upward, anticipating continued growth and profitability.
- Net sales increased by 46.7% to $133.8 million compared to the prior year period.
- Gross profit increased by 65.5% to $29.6 million, representing 22.1% of net sales.
- Adjusted EBITDA increased by 127.5% to $16.2 million.
- The company completed the acquisitions of HEAVY 16 and House & Garden during the quarter, expanding its proprietary consumable offerings.
Headline financials
Revenue & EPS history
Hydrofarm · Revenue · Quarterly
$134M
Forward guidance
Hydrofarm anticipates net sales growth between 45% and 50% and adjusted EBITDA of $55.0 million to $62.0 million for the full fiscal year 2021. These estimates include partial-period contributions from recent acquisitions.
Tailwinds
- Net sales growth between 45% and 50%.
- Adjusted EBITDA of $55.0 million to $62.0 million, representing margin expansion to approximately 11.0% to 12.1% for the full fiscal year.
- Partial period contributions from the acquisitions of Heavy 16, House & Garden, Aurora Innovations and Greenstar Plant Products.
- Moderating organic growth in the second half augmented by acquisition growth from the completed transactions.
- An effective tax rate of 10% to 14% of pre-tax book income enabled by the utilization of tax credits and carryforwards.
Headwinds
- The ongoing COVID-19 pandemic could have a material adverse effect on the Company’s business, results of operation, financial condition and/or cash flows.
- Interruptions in the Company's supply chain, whether due to COVID-19 or otherwise could adversely impact expected sales growth and operations.
- The highly competitive nature of the Company’s markets could adversely affect its ability to maintain or grow revenues.
- Compliance with environmental and other public health regulations or changes in such regulations or regulatory enforcement priorities could increase the Company’s costs of doing business or limit the Company’s ability to market all of its products.
- Acquisitions, other strategic alliances and investments could result in operating and integration difficulties, dilution and other harmful consequences that may adversely impact the Company’s business and results of operations.
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 Q2 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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