Zacks Investment Research downgraded
Hudson Technologies Inc.
) to a Zacks Rank #5 (Strong Sell) on Apr 12, 2014. Going by the
Zacks model, companies holding a Zacks Rank #5 have strong
chances of performing worse than the broader market.
HUDSON TECHNOLO (HDSN): Free Stock Analysis
ILL TOOL WORKS (ITW): Free Stock Analysis
KADANT INC (KAI): Free Stock Analysis Report
MIDDLEBY CORP (MIDD): Free Stock Analysis
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Why the Downgrade?
Hudson Technologies' fourth-quarter 2013 results failed to
impress its shareholders as evidenced by a nearly 1% fall in
share price since Feb 26. Year to date, the company has yielded a
negative return of 23.9%. A snapshot of the quarter's results and
outlook are provided below:
The company reported loss per share of 6 cents as against
earnings of 11 cents per share reported in the year-ago quarter.
However, the result was better than the Zacks Consensus Estimate
of a loss of 7 cents a share.
Hudson Technologies' revenues in the quarter decreased 2.0% year
over year to $4.8 million. Impact of higher sales volumes was
more than offset by lower services revenues. Gross profit margin
in the quarter was at 3.6%, down from 20.0% recorded in the
In the last 60 days, the Zacks Consensus Estimate for Hudson
Technologies has decreased 57.1% to 6 cents for 2014 and by 13.3%
to 26 cents for 2015. These estimates reflect a 53.6%
year-over-year decline for 2014 and growth of 307.7% for 2015.
Lowered earnings estimates have made us dubious about the
company's performance in the quarters ahead.
Other Stocks to Consider
Hudson Technologies currently has a market capitalization of $72
million. Other stocks to watch out for in the sector include
Illinois Tool Works Inc.
), all of which carry a Zacks Rank #1 (Strong Buy).