Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM) reported Q3 EPS of ($0.29), $0.08 worse than the analyst estimate of ($0.21). Revenue for the quarter came in at $44 million versus the consensus estimate of $46.81 million.

Reaffirms Full Year 2024 Outlook on Key Metrics

The Company is reaffirming its full year 2024 outlook on Key Metrics:

Net sales to decrease low to high teens in percentage terms, tracking toward the middle of the range.
Adjusted EBITDA(1) that is positive.
Free Cash Flow(1) that is positive.

Hydrofarm’s 2024 outlook also reaffirms the following assumptions:

Reduced year-over-year Adjusted SG&A(1) expense resulting primarily from (i) full year benefit of headcount reductions completed in 2023 and (ii) reductions in professional fees, facilities and insurance expenses.
Reduction in inventory and net working capital helping to generate positive Free Cash Flow(1) for the full year.

Hydrofarm’s 2024 outlook also includes the following updated assumptions:

Adjusted Gross Profit Margin(1) that is flat to slightly down compared to the prior year. This is an update to the prior expectation of a year-over-year improvement.
Capital expenditures of $2.5 million to $3.5 million, compared to the prior expectation of $3.5 million to $4.5 million.

For earnings history and earnings-related data on Hydrofarm Holdings Group, Inc. (HYFM) click here.