Hudson Capital Inc. (HUSN) stock prices were up by 0.61% as of the market closing on October 13th, 2021. This brought the price per share up to USD$2.48 at the end of the trading day. Subsequent premarket fluctuations have seen the stock surge by 17.34%, bringing it up to USD$2.91.
HUSN Stock to Acquire Freight App
October 14th 2021 saw HUSN stock announce that its partnering company Freight App Inc. had released its preliminary revenue reports. Freight App is a North American transportation logistics tech platform company that focuses on US-Mexico cross border shipping. The two companies are currently collaborating under the terms of a definitive Merger Agreement. The third quarter of fiscal 2021 saw more than a doubling of the partnering company’s revenues as compared to the prior year quarter. Sales reported a 103% increase from the same period of the prior year quarter. the company has nearly tripled its sales in a year to date basis, as compared to the prior year period.
Q3 2021 Headwinds
The third quarter of fiscal 2021 was marked by commercial truck driver shortages and logistics chain constraints, with decreasing returns from long haul drivers as a result of escalating diesel prices. The partnering company’s carrier customers continue to find its platform increasingly relevant, as managing fleets efficiently is becoming more and more critical to customers’ overall operations. Freight App’s shipper base is drawn the company’s competitive cost and level of service, which it manages to secure through its growing carrier base. Accordingly, carriers value the company’s ability to facilitate the efficiency of operations and the avoidance of the high cost of driving ‘dead miles’ or empty trucks.
Preliminary Revenue Reports
The third quarter of fiscal 2021 reported preliminary revenues in the amount of roughly USD$5.6 million. This represents a 103% increase from the approximately USD$2.7 million reported in revenues for the prior year quarter, nearly a doubling in revenue over the course of the year. Preliminary revenues for the nine month period ended September 30th 2021 were reported at roughly USD$16.2 million, an increase of 197% from the roughly USD$5.5 million reported in the prior year quarter.
Future Outlook for HUSN Stock
The company reported a promising quarter, as evidenced by the strength of its preliminary revenue reports through Freight App. HUSN stock is keen to maintain the momentum it has generated through to the end of the fiscal year and beyond. Current and potential investors are hopeful that management will be able to effectively leverage the resources at their disposal. This is hoped to facilitate significant and sustained increases in shareholder value over the long term.