Hydrofarm (HYFM) Cuts 4Q21 Guidance 50% & Buys IGE; 2022 at risk or sales delayed?

by | Oct 29, 2021 | Company Analysis, Earnings Report

Hydrofarm (HYFM), a NASDAQ traded supplier and distributor of hydroponics products with high exposure to the legal cannabis industry, guided 3Q21 and 2021 sales down on Octboer 26 as they increased their credit line to $125 million and acquired Innovative Growers Equipment (IGE) for $58 million. Meanwhile, the stock is flat and consensus estimates are unchanged.

What’s the math and the story behind this?  Premium Members can access the quarterly math of the guidance and read the narrative below…