Earnings Miss: Hudson Technologies, Inc. Missed EPS By 58% And Analysts Are Revising Their Forecasts
Hudson Technologies, Inc. (NASDAQ:HDSN) just released its latest third-quarter report and things are not looking great. Hudson Technologies delivered a grave earnings miss, with both revenues (US$59m) and statutory earnings per share (US$0.05) falling badly short of analyst expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Hudson Technologies after the latest results.
Taking into account the latest results, the current consensus from Hudson Technologies' four analysts is for revenues of US$251.2m in 2027. This would reflect a modest 3.7% increase on its revenue over the past 12 months. Earnings are expected to improve, with Hudson Technologies forecast to report a statutory profit of US$0.28 per share. In the lead-up to this report, the analysts had been modelling revenues of US$271.8m and earnings per share (EPS) of US$0.33 in 2027. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.
View our latest analysis for Hudson Technologies
The consensus price target fell 12% to US$6.44, with the weaker earnings outlook clearly leading valuation estimates. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Hudson Technologies, with the most bullish analyst valuing it at US$7.25 and the most bearish at US$4.50 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Hudson Technologies shareholders.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Hudson Technologies' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 2.9% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 1.3% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 7.2% per year. Although Hudson Technologies' revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that in mind, we wouldn't be too quick to come to a conclusion on Hudson Technologies. Long-term earnings power is much more important than next year's profits. We have forecasts for Hudson Technologies going out to 2028, and you can see them free on our platform here.
You can also see our analysis of Hudson Technologies' Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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