Shares of refrigerant supplier Hudson Technologies, Inc. (NASDAQ:HDSN) jumped as much as 30.5% in trading Thursday after the company reported second-quarter earnings. At 11:10 a.m. EDT shares had given up some gains, but were still up 22.2% on the day.
Quarterly revenue jumped 51% from a year ago to $52.2 million, and net income jumped 77% to $8.5 million, or $0.20 per share. Adjusted for one-time items, earnings were $0.22 per share. Analysts were anticipating only $46.3 million in revenue and $0.16 per share in earnings, so results easily topped expectations.
Hudson Technologies also announced the acquisition of Airgas-Refrigerants, a subsidiary of Airgas. The deal will be worth about $220 million and will be financed by an enhanced $150 lending facility and a new term loan of between $95 million and $110 million.
Management thinks the acquisition will give even more momentum to the business and allow for both cost synergies and the ability to reclaim more refrigerants. And the fact that the acquisition won't dilute shareholders could give further upside if the benefits come to fruition. In addition, Hudson Technologies is making strong moves to expand its footprint and product offerings for customers, which bodes well for the stock over the long term.