There's been a major selloff in Hudson Technologies, Inc. (NASDAQ:HDSN) shares in the week since it released its third-quarter report, with the stock down 23% to US$5.88. Results look mixed - while revenue fell marginally short of analyst estimates at US$62m, statutory earnings beat expectations 7.9%, with Hudson Technologies reporting profits of US$0.17 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Hudson Technologies

After the latest results, the consensus from Hudson Technologies' four analysts is for revenues of US$239.0m in 2025, which would reflect a small 3.4% decline in revenue compared to the last year of performance. Statutory earnings per share are expected to dive 35% to US$0.44 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$286.3m and earnings per share (EPS) of US$0.87 in 2025. Indeed, we can see that the analysts are a lot more bearish about Hudson Technologies' prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.

The consensus price target fell 28% to US$7.31, with the weaker earnings outlook clearly leading valuation estimates. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. 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. This is a very narrow spread of estimates, implying either that Hudson Technologies is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 2.7% annualised decline to the end of 2025. That is a notable change from historical growth of 16% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.4% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Hudson Technologies is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Hudson Technologies analysts - going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Hudson Technologies (1 can't be ignored!) that you should be aware of.

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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.