Hudson Technologies (HDSN) Surges On Earnings Beat

Hudson Technologies’ (HDSN) shares climbed over 26% after reporting much better-than-expected Q2 results last night. Indeed, even with revenues for the period of $90.5 million coming in a smidgen below the $90.8 million analysts had been projecting—due to lower selling prices for certain refrigerants—and even as the gap between its inventory costs and sales prices continued to narrow as expected, the company reported earnings of 41 cents per share, which comfortably exceeded the 36-cent consensus estimate. This was driven by the continued sequential recovery in HDSN’s gross margin, which following the disappointing 32% it had recorded in Q4 of 2022 had recovered to 39% in Q1 and improved to a solid 40% in Q2 and remained well above its long-term target of 35%.