Hf Foods Group (NASDAQ:HFFG) Issues Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Hf Foods Group (NASDAQ:HFFG) issued its quarterly earnings results on Monday. The company reported $0.04 EPS for the quarter, topping the consensus estimate of $0.02 by $0.02, FiscalAI reports. Hf Foods Group had a negative net margin of 2.77% and a positive return on equity of 7.24%. The company had revenue of $319.57 million during the quarter, compared to analysts’ expectations of $318.26 million.

Here are the key takeaways from Hf Foods Group’s conference call:

• Revenue rose 4.1% to $319.6 million, marking the seventh consecutive quarter of year-over-year growth, while gross profit increased 5.9% and gross margin expanded to 16.7%. Seafood volume growth and improved pricing were key drivers.
• Profitability weakened: adjusted EBITDA fell 6.3% to $11 million, and HF Foods reported a $4.2 million net loss versus a $1.1 million loss a year ago. Management cited higher fuel costs and one-time transaction and refinancing expenses; fuel headwinds were about $1.4 million for the quarter.
• Searay contributed $4.2 million in revenue and $0.6 million in adjusted EBITDA during its first month under HF Foods, with a mid-teens adjusted EBITDA margin. The company expects the fourth quarter to be its first full quarter of Searay results, though integration and synergy work remain in early stages.
• Cash provided by operating activities reached $23.6 million in the first nine months, up from $4.5 million a year earlier, mainly reflecting a smaller inventory build and working-capital timing. After the Searay acquisition, HF Foods reported $16.4 million in cash and access to about $49.1 million in additional credit, subject to borrowing-base limits.
• Management described cross-selling as a significant opportunity but said it will unfold over a three-to-five-year period, with Searay integration taking priority in the near term. The company said it will continue evaluating acquisitions, while emphasizing disciplined pricing and integration capacity.

Hf Foods Group Trading Down 3.1%

Shares of HFFG stock opened at $1.43 on Tuesday. The company has a 50 day moving average of $1.58 and a 200-day moving average of $1.77. Hf Foods Group has a 12-month low of $1.38 and a 12-month high of $2.79. The firm has a market cap of $76.81 million, a P/E ratio of -2.19, a PEG ratio of 0.42 and a beta of 0.58. The company has a quick ratio of 0.49, a current ratio of 1.11 and a debt-to-equity ratio of 0.57.

Wall Street Analysts Forecast Growth

HFFG has been the subject of a number of recent research reports. Alliance Global Partners reaffirmed a “buy” rating on shares of Hf Foods Group in a research report on Thursday, July 23rd. Weiss Ratings raised shares of Hf Foods Group from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday, October 27th. Two investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $5.50.

Hf Foods Group Company Profile

HF Foods Group Inc is a foodservice distributor that supplies restaurants and other foodservice businesses in the United States. The company primarily serves Asian restaurants, with a focus on Chinese restaurants, and provides products and distribution services designed to meet the specialized needs of these operators.

Its product portfolio generally includes fresh produce, meats, seafood, frozen and dry goods, beverages, condiments, paper products, and other restaurant supplies. HF Foods Group also provides logistics, warehousing, delivery, sourcing, and related supply-chain services, helping customers obtain a broad range of ingredients and operational supplies from a single distributor.

Founded in 1997 and headquartered in Raleigh, North Carolina, HF Foods Group has expanded through a network of distribution facilities serving restaurant customers across multiple regions of the United States.