Despite reporting much stronger-than-expected results for the final quarter of 2022, shares of Hudson Technologies (HDSN) had a tough day, falling 9%. Specifically, the company reported Q4 revenues of $47.4 million and earnings of 11 cents per share, which comfortably exceeded the $37.4 million and 7 cents analysts had been projecting thanks to higher-than-anticipated selling prices and sales volume for certain refrigerants. Yet given how much stronger the top line was versus expectations, I believe investors were disappointed that the beat on the bottom line wasn’t better. This reflects the fact that HDSN’s gross margin for the period of 32% was significantly lower than the more than 40% management hinted at during its Q3 earnings call back in November and even below its long-term target of 35%.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.