NASDAQ$HYFM
Hydrofarm Holdings Group Inc. · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
Reported a decrease in net sales and gross profit due to challenging industry conditions, but generated positive free cash flow and reaffirmed full-year outlook.
Hydrofarm Holdings Group reported a decrease in net sales to $74.2 million compared to $123.8 million in the prior year period. The company experienced a net loss of $(23.5) million, or $(0.52) per diluted share, compared to net income of $17.3 million, or $0.37 per diluted share in the third quarter of 2021. They generated positive Free Cash Flow of $5.6 million. The company reaffirmed its full year 2022 outlook for net sales and adjusted EBITDA.
- Net sales decreased to $74.2 million compared to $123.8 million in the prior year period.
- Gross Profit decreased to $5.9 million compared to $30.0 million in the prior year period.
- Net loss was $(23.5) million, or $(0.52) per diluted share, compared to net income of $17.3 million, or $0.37 per diluted share in the prior year period.
- Adjusted EBITDA decreased to $(9.0) million compared to $16.1 million in the prior year period.
Headline financials
Revenue & EPS history
Hydrofarm · Revenue · Quarterly
$74.2M
Forward guidance
The Company is reiterating its full year 2022 outlook with net sales of approximately $330 million to $347 million and Adjusted EBITDA of $(25) million to $(16) million.
Tailwinds
- Reaffirming full year 2022 outlook for net sales of approximately $330 million to $347 million.
- Reaffirming full year 2022 outlook for Adjusted EBITDA of approximately $(25) million to $(16) million.
- Assumes similar sales levels in recent months continue over the remaining months in the fiscal year.
- Assumes some further reduction due to holiday shortened months in the fourth quarter.
- Assumes no further material increase in the $19 million of inventory and accounts receivable reserves and related charges recorded during the nine months year-to-date.
Headwinds
- Net sales are expected to be lower than the previous year.
- Adjusted EBITDA is expected to be negative.
- Outlook assumes some further reduction due to holiday shortened months in the fourth quarter.
- Outlook assumes no further material increase in inventory and accounts receivable reserves and related charges.
- Variability, complexity and low visibility with respect to certain items, including, but not limited to, impairment, certain potential future acquisition expenses, and the potential tax implications of these estimated expenses.
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 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
| 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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