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Hydrofarm Holdings Group, Inc. (HYFM) Reports Q3 Loss, Lags Revenue Estimates
HYFMHydrofarm(HYFM) ZACKS·2024-11-07 14:30

Company Performance - Hydrofarm Holdings Group, Inc. (HYFM) reported a quarterly loss of 0.26pershare,whichwasworsethantheZacksConsensusEstimateofalossof0.26 per share, which was worse than the Zacks Consensus Estimate of a loss of 0.23, and compared to a loss of 0.25pershareayearago,indicatinganearningssurpriseof−13.040.25 per share a year ago, indicating an earnings surprise of -13.04% [1] - The company posted revenues of 44.01 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 6.36%, and down from 54.17millioninthesamequarterlastyear[2]−Overthelastfourquarters,HydrofarmhassurpassedconsensusEPSestimatesonlyonceandhastoppedconsensusrevenueestimatestwotimes[2]StockPerformance−Hydrofarmshareshavedeclinedapproximately35.954.17 million in the same quarter last year [2] - Over the last four quarters, Hydrofarm has surpassed consensus EPS estimates only once and has topped consensus revenue estimates two times [2] Stock Performance - Hydrofarm shares have declined approximately 35.9% since the beginning of the year, contrasting with the S&P 500's gain of 24.3% [3] - The current consensus EPS estimate for the upcoming quarter is -0.28 on revenues of 41million,andforthecurrentfiscalyear,itis−41 million, and for the current fiscal year, it is -0.99 on revenues of $197 million [7] Industry Outlook - The Agriculture - Products industry, to which Hydrofarm belongs, is currently ranked in the bottom 24% 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 performance [5]