NASDAQ$HYFM
Hydrofarm Holdings Group Inc. · Q3 2021 earnings
Q3 2021 earnings · · Investor relations
Briefing
Hydrofarm's financial results increased in Q3 2021, driven by net sales growth and improved gross profit.
Hydrofarm Holdings Group reported a 28.1% increase in net sales, a 64.9% increase in gross profit, and a significant increase in net income attributable to common stockholders. Adjusted EBITDA also saw a substantial increase. The company reaffirmed its updated full-year 2021 outlook.
- Net sales increased by 28.1% to $123.8 million compared to the prior year period.
- Gross profit increased by 64.9% to $30.0 million, with gross margin improving to 24.2%.
- Net income attributable to common stockholders was $17.3 million, or $0.37 per diluted share.
- Adjusted EBITDA increased by 116.7% to $16.1 million.
Headline financials
Revenue & EPS history
Hydrofarm · Revenue · Quarterly
$124M
Forward guidance
The company reaffirmed its updated outlook for the full fiscal year 2021, expecting net sales growth between 37% and 43%, or approximately $470.0 million to $490.0 million, and Adjusted EBITDA of $47.0 million to $53.0 million, representing margin expansion to approximately 10.0% to 11.0% for the full fiscal year.
Tailwinds
- Net sales growth between 37% and 43%, or approximately $470.0 million to $490.0 million.
- Adjusted EBITDA of $47.0 million to $53.0 million, representing margin expansion to approximately 10.0% to 11.0% for the full fiscal year.
- Partial period contributions from acquisitions.
- Full-year organic growth of approximately 18% to 23% and M&A growth of approximately 19% to 20%.
- Capital expenditures of approximately $8.0 to $10.0 million to support expansion to recently acquired manufacturing operations in addition to distribution center expansions.
Headwinds
- Agriculture oversupply putting downward pressure on cannabis growing activity.
- Impacted results for the balance of the year due to oversupply.
- Organic growth heavily weighted toward the first half of fiscal 2021.
- M&A growth heavily weighted toward the second half of fiscal 2021.
- An estimated tax provision between $2.5 million and $3.5 million for the full year, excluding the large discrete tax benefit recognized in Q3.
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 Q3 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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