Hydrofarm Holdings Group, Inc. (HYFM) Reports Q4 Loss, Lags Revenue Estimates

Core Insights - Hydrofarm Holdings Group, Inc. reported a quarterly loss of $3.80 per share, which was worse than the Zacks Consensus Estimate of a loss of$2.80, marking a 35.71% earnings surprise [1] - The company's revenues for the quarter ended December 2024 were $37.31 million, missing the Zacks Consensus Estimate by 8.99$47.18 million a year ago [2] - Hydrofarm shares have declined approximately 20.9% since the beginning of the year, contrasting with the S&P 500's decline of 1.8% [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 -$2.50 on revenues of$50 million, and for the current fiscal year, it is -$9.40 on revenues of$191 million [7] Industry Outlook - The Agriculture - Products industry, to which Hydrofarm belongs, is currently ranked in the bottom 19% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Hydrofarm's stock performance [5] Future Expectations - The estimate revisions trend for Hydrofarm is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - Investors are advised to monitor changes in earnings estimates for the coming quarters and the current fiscal year, as these could influence stock performance [4][7]