Hudson Technologies, Inc. (NASDAQ:HDSN) just released its quarterly report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 7.5% to hit US$65m. Hudson Technologies reported statutory earnings per share (EPS) US$0.20, which was a notable 13% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Hudson Technologies

Following the recent earnings report, the consensus from four analysts covering Hudson Technologies is for revenues of US$257.9m in 2024. This implies a small 6.9% decline in revenue compared to the last 12 months. Statutory earnings per share are expected to tumble 27% to US$0.74 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$287.8m 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 following the latest results, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

It'll come as no surprise then, to learn that the analysts have cut their price target 18% to US$12.00. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Hudson Technologies, with the most bullish analyst valuing it at US$13.00 and the most bearish at US$10.00 per share. This is a very narrow spread of estimates, implying either that Hudson Technologies is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Hudson Technologies. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Hudson Technologies. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Hudson Technologies going out to 2025, and you can see them free on our platform here..

Even so, be aware that Hudson Technologies is showing 1 warning sign in our investment analysis , you should know about...

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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.