HYFM Earnings Prediction
The chart below shows how HYFM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HYFM sees a +17.19% change in stock price 10 days leading up to the earnings, and a -0.79% change 10 days following the report. On the earnings day itself, the stock moves by -2.89%. This data can give you a slight idea of what to expect for the next quarter's release.
HYFM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
44.01M
-18.75%
-19.68%
Gross Margin
20.67%
4.13%
-3.55%
Operating Margin
-21.16%
28.01%
51.25%
Net Margin
-29.87%
-18.63%
-30.21%
EPS
-0.29
-34.09%
-43.14%
No Data Available
HYFM Earnings Analysis
Hydrofarm Holdings Group, Inc. Common Stock Corporation (HYFM.O) Earnings Conference Call
Positive
Gross Profit Margin Improvement: 1. Improved Gross Profit Margins: Adjusted gross profit was $10.7 million or 24.3% of net sales, a 130 basis point increase year-over-year, driven by a better mix of higher-margin proprietary branded sales.
Cost Reduction Achievement: 2. Cost Management Success: Adjusted SG&A expenses were reduced by nearly 11% to $10.7 million compared to $12 million last year, contributing to a 19% reduction year-to-date.
Sustained Profit Margin Success: 3. Consistent Profitability: The company has achieved six consecutive quarters of adjusted gross profit margins at or above 23%, demonstrating effective cost-saving measures and operational efficiency.
Proprietary Brand Sales Growth: 4. Increased Proprietary Brand Sales: Proprietary brands represented 56% of total net sales, up from 54% in the prior year, indicating a successful focus on higher-margin products.
Adjusted EBITDA Improvement: 5. Positive Adjusted EBITDA Growth: Year-to-date adjusted EBITDA of $2.1 million has more than doubled compared to 2023, reflecting the success of restructuring and cost-saving initiatives.
Negative
Sales Decline Analysis: 1. Declining Net Sales: Net sales for Q3 2024 were $44 million, down 18.8% year-over-year, primarily due to a 13.7% decrease in volume mix and a 4.9% decline in pricing.
Negative Cash Flow Impact: 2. Negative Cash Flow: The company reported cash flow from operating activities of negative $4.5 million in Q3, resulting in a free cash flow of negative $5.3 million, impacted by investments in new partner brands and working capital delays.
High Leverage Concerns: 3. High Debt Levels: As of September 30, 2024, total debt stood at approximately $128 million, with net debt around $104 million, indicating a significant leverage position amidst declining sales.
Commercial Sales Decline: 4. Weak Commercial Business: The commercial customer segment remains below previous levels, with ongoing uncertainty due to regulatory changes, contributing to overall sales weakness.
Inventory Management Issues: 5. Inventory Challenges: The company faced challenges with inventory management as independent retailers consolidated their stock, leading to delayed purchasing and further impacting sales.
HYFM FAQs
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HYFM Earning Call Sentiment
Hydrofarm Holdings Group, Inc. (HYFM) Q3 2024 Earnings Call Transcript
HYFM.O
-2.6%Positive
The earnings call reveals declining net sales and cash flow issues, despite some positive financial metrics like improved gross profit and reduced SG&A expenses. The company's challenges, such as industry oversupply and regulatory constraints, weigh heavily on its outlook. While there is optimism in future free cash flow and adjusted EBITDA, the high debt levels and negative cash flow are concerning. The Q&A session highlights uncertainties and management's unclear responses, especially regarding partner impacts and market setbacks. Overall, the sentiment leans negative, considering the mixed guidance and financial pressures.