Analysts Are More Bearish On Hudson Technologies, Inc. (NASDAQ:HDSN) Than They Used To Be

Market forces rained on the parade of Hudson Technologies, Inc. (NASDAQ:HDSN) shareholders today, when the analysts downgraded their forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

Following the latest downgrade, the four analysts covering Hudson Technologies provided consensus estimates of US$258m revenue in 2024, which would reflect a discernible 6.9% decline on its sales over the past 12 months. Statutory earnings per share are supposed to tumble 27% to US$0.74 in the same period. Prior to this update, the analysts had been forecasting revenues of US$288m and earnings per share (EPS) of US$0.97 in 2024. Indeed, we can see that the analysts are a lot more bearish about Hudson Technologies' prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Hudson Technologies

The consensus price target fell 18% to US$12.00, with the weaker earnings outlook clearly leading analyst valuation estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 9.1% by the end of 2024. This indicates a significant reduction from annual growth of 18% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.7% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Hudson Technologies is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Hudson Technologies.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Hudson Technologies analysts - going out to 2025, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.