Hf Foods Group (NASDAQ:HFFG) Posts Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Hf Foods Group (NASDAQ:HFFG) posted its earnings results on Monday. The company reported $0.12 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.06 by $0.06, FiscalAI reports. Hf Foods Group had a negative net margin of 2.90% and a positive return on equity of 6.94%. The company had revenue of $323.78 million during the quarter, compared to the consensus estimate of $320.54 million.

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

• Revenue reached a record $323.8 million, up 2.8% year over year and marking the sixth consecutive quarter of growth, driven by volume gains and improved seafood pricing.
• Profitability remained under pressure, with gross margin declining to 17% and adjusted EBITDA falling 2% to $13.6 million as tariffs, fuel costs, softer dine-in traffic, and pricing concessions offset growth.
• HF Foods agreed to acquire Canadian seafood distributor Searay Foods for approximately $35 million, or about 5x baseline adjusted EBITDA; management expects the mid-teens-margin business to be immediately accretive to margins and EPS, subject to closing conditions.
• The company refinanced and expanded its credit facility, increasing revolver commitments to $140 million and extending maturities to 2031 and 2036, providing additional liquidity for the Searay deal and future acquisitions.
• Southeast seafood volumes are increasing, while Charlotte’s facility is expected to improve distribution efficiency in the fourth quarter; larger Midwest capacity benefits may not materialize until late 2026 or 2027.

Hf Foods Group Price Performance

NASDAQ:HFFG traded up $0.21 during trading hours on Tuesday, hitting $1.77. 1,413,151 shares of the stock were exchanged, compared to its average volume of 225,562. The firm’s fifty day moving average price is $1.70 and its 200 day moving average price is $1.84. Hf Foods Group has a 52-week low of $1.38 and a 52-week high of $3.87. The company has a market cap of $94.64 million, a P/E ratio of -2.66, a P/E/G ratio of 0.43 and a beta of 0.58. The company has a current ratio of 1.11, a quick ratio of 0.49 and a debt-to-equity ratio of 0.59.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Invesco Ltd. grew its position in shares of Hf Foods Group by 37.1% in the second quarter. Invesco Ltd. now owns 16,070 shares of the company’s stock valued at $51,000 after purchasing an additional 4,351 shares in the last quarter. JPMorgan Chase & Co. increased its position in shares of Hf Foods Group by 11.6% during the third quarter. JPMorgan Chase & Co. now owns 54,436 shares of the company’s stock worth $150,000 after acquiring an additional 5,640 shares during the period. Dimensional Fund Advisors LP raised its stake in shares of Hf Foods Group by 1.4% in the third quarter. Dimensional Fund Advisors LP now owns 420,812 shares of the company’s stock valued at $1,161,000 after acquiring an additional 5,708 shares in the last quarter. Bridgeway Capital Management LLC boosted its holdings in Hf Foods Group by 6.0% in the third quarter. Bridgeway Capital Management LLC now owns 112,155 shares of the company’s stock valued at $310,000 after purchasing an additional 6,337 shares during the period. Finally, Empowered Funds LLC boosted its holdings in Hf Foods Group by 10.1% in the fourth quarter. Empowered Funds LLC now owns 80,713 shares of the company’s stock valued at $174,000 after purchasing an additional 7,384 shares during the period. 24.02% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on HFFG. Weiss Ratings cut shares of Hf Foods Group from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Thursday. Roth Capital reissued a “buy” rating on shares of Hf Foods Group in a report on Wednesday, April 29th. Finally, Alliance Global Partners restated a “buy” rating on shares of Hf Foods Group in a research report on Thursday, July 23rd. Two research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $5.50.

Hf Foods Group Company Profile

HF Foods Group, Inc, together with its subsidiaries, manufactures, imports and distributes a variety of ethnic and specialty food products primarily for retail and foodservice customers in the United States. The company focuses on value‐added fresh and frozen offerings that cater to growing consumer interest in Hispanic and other global cuisines. Its vertically integrated operations include in‐house manufacturing, procurement of specialty ingredients, and third‐party distribution partnerships.

The company’s product portfolio spans a broad range of categories, including fresh and frozen tamales, enchiladas, empanadas, tortillas and quesadillas, as well as shelf‐stable salsas, sauces, dips, spreads and snack items.