HDSN -.66 to 8.64, I joined you with a few shares .... surprised to see this selloff after the strong Q2 numbers and bullish remarks from the CEO -
PR -
Company Increases 2022 Forecast and Provides New 3-Year Target
Mr. Coleman continued, “Given the pricing dynamics to date for the current selling season, we are increasing our previously stated 2022 forecast and longer-term targets. Based on current pricing levels, we should see revenues in excess of $290 million for full year 2022. While we continue to believe margin performance for the full year will moderate due to increases in inventory cost and anticipated stabilization in sales prices during the balance of this season, with our visibility today we now believe full year blended gross margin will be at least in the mid 40% range.
“In 2022, we are seeing the accelerated shift to what we expect will be significantly higher and sustained profitability for the business going forward. Assuming further HFC price increases related to the HFC phasedown under the AIM Act, albeit at a slower pace than we saw in 2022, we are targeting annualized revenue of greater than $400 million by 2025 with gross margins remaining above historical levels but moderating over the next three years to approximately 35%. This shift we are seeing to significantly increased profits for the business provides considerably enhanced financial flexibility for us to invest in our long- term growth while also continuing to reduce debt,” Mr. Coleman concluded.
AI
