HUT Earnings Prediction
The chart below shows how HUT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HUT sees a +13.21% change in stock price 10 days leading up to the earnings, and a -2.83% change 10 days following the report. On the earnings day itself, the stock moves by -0.13%. This data can give you a slight idea of what to expect for the next quarter's release.
HUT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
43.73M
--
24.19%
Gross Margin
35.93%
--
314.90%
Operating Margin
-1.05%
--
-97.51%
Net Margin
2.08%
--
-101.04%
EPS
0.01
110.00%
-101.25%
No Data Available
HUT Earnings Analysis
Hut 8 Corp. Common Stock Corporation (HUT.O) Earnings Conference Call
Positive
Record Revenue Surge: 1. Revenue Growth: Hut 8 Corp. reported a 102% year-over-year increase in revenue, reaching $43.7 million for Q3 2024.
Net Income Turnaround: 2. Net Income Improvement: The company achieved a net income of $0.9 million in Q3 2024, a significant turnaround from a loss of $4.4 million in the same quarter last year.
Energy Cost Reduction: 3. Cost Reduction in Energy: Hut 8 successfully reduced its average cost of energy per kilowatt hour by nearly 28% over the past two quarters, enhancing operational efficiency.
Managed Services Revenue Surge: 4. Expansion of Managed Services: Revenue from managed services surged more than four-fold year-over-year to $20.8 million, driven by the ramp-up of the MSA with Ionic Digital and a termination fee from Marathon.
Vega Project Revenue Potential: 5. Strategic Partnerships and Projects: The company is on track to energize its Vega project, which is expected to generate approximately $135 million in annualized revenue starting in Q2 2025.
Negative
Digital Asset Mining Decline: 1. Declining Digital Asset Mining Revenue: Revenue from the digital asset mining business fell from $15.6 million to $11.6 million year-over-year, primarily due to a reduction in Bitcoin mined following the halving and increased network difficulty.
Decline in Adjusted EBITDA: 2. Decreased Adjusted EBITDA: Adjusted EBITDA decreased to $5.6 million from $11.5 million in the prior year, reflecting a loss on digital assets of $1.6 million despite a gain on debt extinguishment of $6 million.
Declining Gross Margins: 3. Lower Gross Margins in High-Performance Computing: The gross margins for the high-performance computing, colocation, and cloud business decreased slightly from 26% to 24% quarter-over-quarter, indicating potential challenges in maintaining profitability in this segment.
Capital Expenditure Challenges: 4. Increased Capital Expenditure Requirements: The company anticipates a total CapEx of approximately $80 million for the Vega project, which may strain financial resources as they also plan for additional CapEx for machine purchases in fiscal 2025.
Natural Gas Revenue Concerns: 5. Uncertain Future Revenue from Natural Gas Power Plants: While the natural gas power plants generated $5.4 million in revenue, the company does not expect this segment to be a major source of revenue going forward, indicating potential limitations in monetizing these assets.
HUT FAQs
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HUT Earning Call Sentiment
Hut 8 Corp. (HUT) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
HUT.O
1.14%Positive
The earnings call reveals strong financial performance with a 102% revenue increase, improved net income, and significant cost optimizations. The shareholder return plan's debt conversion to equity is financially beneficial, saving $17.6 million in interest. The Q&A section indicates a proactive strategy in AI commercialization and prudent capital management, though some responses lacked clarity. Overall, the financial health and strategic growth initiatives, coupled with a positive market cap reaction, suggest a positive stock price movement of 2% to 8% over the next two weeks.
