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WOODCLIFF LAKE, N.J. - Hudson (NYSE:HUD) Technologies, Inc. (NASDAQ:HDSN) reported fourth-quarter earnings that fell short of analyst estimates, sending its stock down 5.9% in after-hours trading.
The refrigerant services company posted a loss of -$0.06 per share for Q4 2024, missing the analyst consensus of -$0.03 per share. Revenue came in at $34.64 million, below expectations of $37.96 million and down 23% from $44.9 million in the same quarter last year.
Hudson Technologies attributed the revenue decline to lower prices for certain refrigerants and reduced activity from its Defense Logistics Agency (DLA) contract. Gross margin compressed to 17% from 31% a year ago, primarily due to pricing pressure.
For the full year 2024, Hudson reported revenue of $237.1 million, an 18% decrease from $289.0 million in 2023. The company cited a challenging selling season with HFC refrigerant prices falling up to 45% YoY.
"Our fourth quarter 2024 results reflected the seasonally slower sales activity we have historically seen outside of our nine-month selling season," said Brian F. Coleman, President and CEO of Hudson Technologies.
Despite the headwinds, Coleman highlighted that the company’s refrigerant reclamation volume increased 18% in 2024. He also noted Hudson’s strong balance sheet, with $70.1 million in cash and no debt as of December 31, 2024.
The company repurchased $8.1 million of common stock during 2024, including $5.5 million in the fourth quarter under its stock buyback program initiated in Q3 2024.
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