Last week, you might have seen that Hudson Technologies, Inc. (NASDAQ:HDSN) released its second-quarter result to the market. The early response was not positive, with shares down 7.4% to US$5.60 in the past week. Results overall were not great, with earnings of US$0.12 per share falling drastically short of analyst expectations. Meanwhile revenues hit US$78m and were slightly better than forecasts. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Hudson Technologies after the latest results.

Taking into account the latest results, Hudson Technologies' four analysts currently expect revenues in 2026 to be US$261.9m, approximately in line with the last 12 months. Statutory earnings per share are expected to descend 13% to US$0.19 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$253.3m and earnings per share (EPS) of US$0.38 in 2026. So it's pretty clear the analysts have mixed opinions on Hudson Technologies after the latest results; even though they upped their revenue numbers, it came at the cost of a large cut to per-share earnings expectations.

The analysts also cut Hudson Technologies' price target 11% to US$7.56, implying that lower forecast earnings are expected to have a more negative impact than can be offset by the increase in revenue. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Hudson Technologies, with the most bullish analyst valuing it at US$8.00 and the most bearish at US$7.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Hudson Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 3.9% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 1.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 7.3% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Hudson Technologies is expected to grow slower than 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. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Hudson Technologies' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Hudson Technologies going out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks.

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.