HFFG Earnings Prediction
The chart below shows how HFFG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HFFG sees a +5.72% change in stock price 10 days leading up to the earnings, and a +38.72% change 10 days following the report. On the earnings day itself, the stock moves by +0.10%. This data can give you a slight idea of what to expect for the next quarter's release.
HFFG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
305.28M
8.69%
2.31%
Gross Margin
17.08%
-8.22%
1.61%
Operating Margin
-13.82%
-394.04%
-7010.00%
Net Margin
-14.39%
-1583.51%
1015.50%
EPS
-0.83
-1760.00%
1085.71%
No Data Available
HFFG Earnings Analysis
Hf Foods Group Inc Corporation (HFFG.O) Earnings Conference Call
Positive
Sales Growth Performance: Net revenue increased by 8.7% in Q4 and 4.6% for the full year 2024, indicating strong growth in sales.
EBITDA Growth and Efficiency: Adjusted EBITDA rose by 39.4% in Q4 and 21.6% for the full year, showcasing improved operational efficiency and profitability.
Business Portfolio Expansion: The company is expanding its business portfolio to include wholesale and retail sales, which helps mitigate industry challenges and drive sustainable growth.
Operational Efficiency Enhancement: The Kansas City oil packaging operation is now operational, enhancing the company's vertical integration and operational efficiency.
Purchasing Program Expansion: The centralized purchasing program is being expanded beyond seafood, which is expected to improve margins and operational efficiency.
Cost Efficiency Initiatives: The transportation and logistics initiatives, including fleet enhancements and route optimization, are set to generate cost efficiencies.
Digital Transformation Progress: The digital transformation initiatives are progressing well, with 12 out of 15 sites operating on a modern ERP platform, which will enhance purchasing capabilities.
Strategic Acquisition Expansion: The company is actively pursuing strategic acquisitions to expand its geographic footprint and operational integration.
Increased Revolver Capacity: The amendment of the credit agreement increased revolver capacity by $25 million, providing additional financial flexibility for growth initiatives.
Negative
Goodwill Impairment Impact: Net income was adversely impacted by a $46,300,000 goodwill impairment charge, which is a significant financial burden for the company.
Profitability Decline Indicator: Gross profit margin decreased to 17.1% from 18.6%, indicating a decline in profitability despite revenue growth.
Expense Increase Analysis: Distribution, selling, and administrative expenses increased to $48,000,000 for the fourth quarter, driven by increased professional fees, payroll severance expenses, and insurance costs.
Operating Performance Decline: Operating loss for the fourth quarter was $42,200,000 compared to operating income of $11,200,000 in the prior year quarter, highlighting a significant downturn in operational performance.
Severe Financial Decline: Net loss of $43,900,000 for the fourth quarter compared to net income of $2,700,000 in the prior year quarter, indicating a severe decline in financial health.
Revenue Loss from Business Exit: The company experienced a $13,300,000 loss in revenue from the exit of its chicken processing business in 2023, which negatively impacted overall revenue growth.
Financial Performance Challenges: Despite an increase in adjusted EBITDA, the overall financial performance was marred by the goodwill impairment and the absence of a prior year settlement gain.
HFFG FAQs
How does HFFG typically perform around its earnings report dates?
Is Hf Foods Group Inc (HFFG) Q4 2024 Earnings Call Summary positive or negative?
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HFFG Earning Call Sentiment
Earnings call transcript: HF Foods Q4 2024 earnings beat, stock surges
HFFG.O
-5.11%Positive
The earnings report shows a decline in gross profit margin, an operating loss, and a significant net loss due to goodwill impairment. Despite revenue growth, the financial health is concerning with increased expenses and a decrease in operating income. The Q&A highlights risks from tariffs, inflation, and decreased restaurant traffic, with management providing unclear responses on critical issues. The revolver capacity increase is a positive sign of banking confidence, but overall, the negative factors outweigh the positives, leading to a likely negative stock price reaction.
