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Hydrofarm Holdings Group Inc (HYFM) stock has reached a new 52-week low, trading at $3.16, representing a 73% decline from its 52-week high of $12. InvestingPro analysis indicates the stock is in oversold territory, with the company’s market capitalization now standing at just $14.95 million as it faces a tumultuous period marked by market headwinds. This latest price level reflects a significant downturn from previous valuations, with the stock experiencing a stark 1-year change of -56.48%. Investors are closely monitoring HYFM’s performance amid concerning fundamentals, including a 16% revenue decline and a Price/Book ratio of 0.07. InvestingPro subscribers have access to 14 additional key insights about HYFM’s financial health and valuation metrics through the comprehensive Pro Research Report.
In other recent news, Hydrofarm Holdings Group reported its fourth-quarter 2024 earnings, which fell short of analyst expectations. The company announced an earnings per share (EPS) of -$3.8, significantly missing the projected -$0.24. Revenue for the quarter was $37.3 million, below the anticipated $41.07 million, marking a 20.9% decline year-over-year. Hydrofarm has projected a 10-20% decline in net sales for 2025, with a focus on improving gross profit margins and reducing negative adjusted EBITDA. Despite the challenges, the company is emphasizing its proprietary brands and exploring international expansion to diversify its revenue streams.
Hydrofarm’s financial results reflect ongoing difficulties within the cannabis industry, including oversupply and regulatory challenges. The company’s gross profit for the quarter was $1.8 million, representing 4.9% of net sales, with an adjusted EBITDA loss of $7.3 million. The company holds a cash balance of $26.1 million and total debt of $128 million. In response to the earnings miss, Hydrofarm’s leadership is focusing on strategic initiatives such as cost reduction and enhanced working capital management. Analysts have noted the company’s efforts to increase its proprietary brand sales mix and expand its e-commerce presence.
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