Examining the Future: Hydrofarm Holdings Group's Earnings Outlook

Hydrofarm Holdings Group HYFM will release its quarterly earnings report on Thursday, 2024-11-07. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Hydrofarm Holdings Group to report an earnings per share (EPS) of $-0.18.

Anticipation surrounds Hydrofarm Holdings Group's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Historical Earnings Performance

The company's EPS missed by $0.06 in the last quarter, leading to a 0.37% increase in the share price on the following day.

Here's a look at Hydrofarm Holdings Group's past performance and the resulting price change:

Performance of Hydrofarm Holdings Group Shares

Shares of Hydrofarm Holdings Group were trading at $0.6145 as of November 05. Over the last 52-week period, shares are down 28.34%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.

Analyst Views on Hydrofarm Holdings Group

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Hydrofarm Holdings Group.

The consensus rating for Hydrofarm Holdings Group is Neutral, derived from 1 analyst ratings. An average one-year price target of $0.65 implies a potential 5.78% upside.

Peer Ratings Comparison

The following analysis focuses on the analyst ratings and average 1-year price targets of Urban-gro, Alamo Group and AGCO, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Buy trajectory for Urban-gro, with an average 1-year price target of $8.0, indicating a potential 1201.87% upside.
• Alamo Group is maintaining an Buy status according to analysts, with an average 1-year price target of $212.0, indicating a potential 34399.59% upside.
• The consensus among analysts is an Neutral trajectory for AGCO, with an average 1-year price target of $106.6, indicating a potential 17247.44% upside.

Peer Analysis Summary

Within the peer analysis summary, vital metrics for Urban-gro, Alamo Group and AGCO are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Hydrofarm Holdings Group ranks at the bottom for Revenue Growth among its peers. It also ranks at the bottom for Gross Profit. For Return on Equity, it is at the bottom as well.

Delving into Hydrofarm Holdings Group's Background

Hydrofarm Holdings Group Inc is a distributor and manufacturer of agriculture equipment and supplies. Some of its products includes lighting solutions, growing media (i.e., premium soils and soil alternatives), nutrients, equipment, and supplies sold under proprietary, exclusive/preferred brands, or non-exclusive/distributed brands. The business is organized into two operating segments, the U.S. and Canada.

Hydrofarm Holdings Group: A Financial Overview

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Decline in Revenue: Over the 3 months period, Hydrofarm Holdings Group faced challenges, resulting in a decline of approximately -13.1% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Hydrofarm Holdings Group's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -42.8%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Hydrofarm Holdings Group's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -8.8%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -4.9%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.69.

To track all earnings releases for Hydrofarm Holdings Group visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.