Shares of Hudson Technologies (NASDAQ:HDSN) plunged Thursday after the refrigerant services company missed on both its first-quarter earnings and revenue due to sluggish sales of refrigerants.
Investors sent its shares down a whopping 30.7% to US$2.84 after the Pearl River, New York-based company posted a loss of US$0.02 per share on revenue of US$42.4mln.
The consensus estimate from analysts was that Hudson would earn $0.02 per share on revenue of US$45.9mln.
Weather that was cooler than normal and price declines contributed to Hudson’s weaker revenues and gross margins in the quarter.
“The 2018 selling season has had a very slow start,” said Chairman and Chief Executive Kevin Zugibe in a statement. “Our first quarter results were negatively impacted by declines in both price and volume for most of the refrigerants we sell, with many customers resorting to a just-in-time buying pattern for all refrigerants, as opposed to the typical pre-season inventory stocking in anticipation of the impending cooling season.”
The company also slashed its revenue expectations for the year to US$230mln, down from its previous forecast of US$250mln and below the market estimate of US$248.7mln. The company's previous guidance was revenue of approximately $250.0 million and the current consensus estimate is revenue of $248.7 million for the year ending December 31, 2018.
Hudson Technologies’ products and services are used in commercial air conditioning, industrial processing and refrigeration systems.