Loading...
•
Jun 30, 2023
Hudson Q2 2023 Earnings Report
Hudson reported a decrease in revenue due to decreased selling prices for certain refrigerants, while maintaining solid profitability.
Key Takeaways
Hudson Technologies reported Q2 2023 results with revenues of $90.5 million, a 13% decrease compared to Q2 2022. Net income was $19.2 million, or $0.41 per diluted share, compared to $39.8 million, or $0.84 per diluted share, in the same period last year. The company's gross margin was 40%, compared to 55% in the prior year period. Despite the decrease in revenue, Hudson continues to strengthen its balance sheet by reducing total debt.
Q2 2023 revenue decreased by 13% to $90.5 million compared to Q2 2022.
Gross margin was 40% in Q2 2023, down from 55% in Q2 2022.
Net income for Q2 2023 was $19.2 million, or $0.41 per diluted share, compared to $39.8 million, or $0.84 per diluted share, in Q2 2022.
Total outstanding debt reduced from $46.8 million at December 31, 2022, to $32.5 million at June 30, 2023.
Forward Guidance
Hudson Technologies anticipates the phasedown of HFCs will create a significant opportunity for reclaimed refrigerants, and they are well-positioned to capitalize on the shift towards sustainable cooling technologies.
Positive Outlook
- The EPA's final rule confirming the mandated 40% baseline reduction in HFCs beginning in 2024 presents a tremendous opportunity.
- The supply of virgin HFCs will become limited.
- Reclaimed refrigerants will be needed to meet demand from the large installed base of HFC equipment.
- Increased focus around proposed regulations promoting the use of more environmentally friendly cooling technology and refrigerants benefits Hudson.
- Hudson is ideally positioned with its reclamation technology, conversion and servicing capabilities.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...