HYDROFARM HOLDINGS Reports Third Quarter Earnings Results for FY2023 Ending September 30, 2023
December 10, 2023
🌥️Earnings Overview
HYDROFARM ($NASDAQ:HYFM): HydroFarm Holdings reported their financial results for the third quarter of FY2023 ending September 30 2023,on November 9 2023. Total revenue decreased 27.0%, to USD 54.2 million, compared to the prior year, while net income was at USD -19.9 million, a decrease of -23.5 million year-over-year.
Price History
The company’s stock opened at $0.9 but closed at $0.8, representing a 5.9% drop from its prior closing price of 0.9. This reduction in the stock price reflects concerns about the company’s potential profitability and performance in the months to come. As such, the company has instituted cost cutting measures in order to preserve their bottom line and protect their future profitability.
Overall, HYDROFARM HOLDINGS has had a mixed performance in their third quarter earnings report, with some areas of improvement but also some uncertainties about their future outlook. Investors should remain cautious as they monitor the company’s performance in the coming months. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Hydrofarm Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 240.86 | -84.87 | -35.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Hydrofarm Holdings. More…
| Operations | Investing | Financing |
| 15.13 | -5.16 | 5.92 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Hydrofarm Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 522.43 | 218.51 | 6.64 |
Key Ratios Snapshot
Some of the financial key ratios for Hydrofarm Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -7.9% | – | -27.1% |
| FCF Margin | ROE | ROA |
| 4.1% | -13.0% | -7.8% |
Analysis
GoodWhale recently performed an analysis of HYDROFARM HOLDINGS‘ wellbeing and used this Star Chart to measure its health score. Overall, HYDROFARM HOLDINGS was found to have an intermediate health score of 4/10, indicating that HYDROFARM HOLDINGS might be able to sustain future operations even in times of crisis. Further investigation revealed that HYDROFARM HOLDINGS is classified as an ‘elephant’, meaning it is a company that is rich in assets after subtracting off liabilities. This makes it an attractive option for long-term investors who are interested in a stable investment with minimal risk. The analysis also revealed that HYDROFARM HOLDINGS is strong in liquidity and medium in asset quality, but weak in dividend yield, growth potential, and profitability. This shows that HYDROFARM HOLDINGS may not be the best choice for short-term investors seeking higher returns, but may be a good option for those looking for a longer-term investment with low risk. More…
Peers
In the construction equipment market, there is intense competition between Hydrofarm Holdings Group Inc and its competitors Wacker Neuson SE, GIKEN Ltd, and Konecranes Oyj. All four companies are vying for market share in the highly competitive construction equipment industry.
– Wacker Neuson SE ($OTCPK:WKRCF)
Wacker Neuson SE is a German manufacturer of construction equipment, based in Munich. The company produces a wide range of products, including excavators, skid steer loaders, and compact track loaders. In addition to construction equipment, Wacker Neuson also manufactures a line of light towers and generators.
Wacker Neuson SE has a market cap of 980.21M as of 2022. The company’s return on equity is 9.24%.
Wacker Neuson SE is a leading manufacturer of construction equipment, with a wide range of products that includes excavators, skid steer loaders, and compact track loaders. The company also manufactures light towers and generators. Wacker Neuson SE has a strong financial position, with a market cap of 980.21M and a return on equity of 9.24%.
– GIKEN Ltd ($TSE:6289)
Nippon Steel Corporation is the world’s second largest steel producer by volume with over 50 million tonnes of output in 2010. The company is also Japan’s largest steel producer. Nippon Steel has its headquarters in Tokyo and its main steelmaking plants in Wakayama, Kimitsu, and Yawata. The company was formed in 2012 from the merger of Nippon Steel and Sumitomo Metal Industries.
Nippon Steel has a market capitalization of over 83 billion US dollars as of 2022. The company’s return on equity was 8.2% in the same year. Nippon Steel is primarily engaged in the business of manufacturing and selling steel products. The company’s products include hot-rolled products, cold-rolled products, plate products, wire rod products, and stainless steel products.
– Konecranes Oyj ($OTCPK:KNCRF)
Konecranes is a Finnish company that manufactures and services cranes and lifting equipment. The company has a market cap of 1.71B as of 2022 and a Return on Equity of 8.03%. The company was founded in 1910 and is headquartered in Hyvinkää, Finland. Konecranes provides lifting equipment and services for a wide range of industries, including manufacturing and assembly, shipyards, ports and terminals, and power plants.
Summary
HYDROFARM HOLDINGS‘ third quarter results for FY2023 showed a significant decrease in both revenue and net income compared to the same period last year. Total revenue was down 27.0% to USD 54.2 million while net income was USD -19.9 million, a decrease of -23.5 million. The stock price dropped in response to the results, making it a less attractive investment for the near-term. Investors should closely monitor HYDROFARM HOLDINGS’ upcoming earnings reports to get a better understanding of the company’s financial condition and determine whether or not they should invest in the company in the long-term.
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