Hydrofarm Holdings Group, Inc. (HYFM) Reports Q2 Loss, Tops Revenue Estimates

Core Insights - Hydrofarm Holdings Group, Inc. reported a quarterly loss of $0.28 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.23, and compared to a loss of $0.21 per share a year ago, indicating a negative earnings surprise of -21.74% [1] - The company generated revenues of $54.79 million for the quarter ended June 2024, exceeding the Zacks Consensus Estimate by 3.38%, but down from $63.05 million in the same quarter last year [2] - Hydrofarm shares have declined approximately 41.9% year-to-date, contrasting with a 9% gain in the S&P 500 [3] Financial Performance - Over the last four quarters, Hydrofarm has surpassed consensus EPS estimates only once [2] - The current consensus EPS estimate for the upcoming quarter is -$0.23 on revenues of $48 million, and for the current fiscal year, it is -$0.99 on revenues of $198 million [7] Industry Context - The Agriculture - Products industry, to which Hydrofarm belongs, is currently ranked in the bottom 17% of over 250 Zacks industries, suggesting a challenging environment for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Hydrofarm's stock outlook [5]