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Hawkins (HWKN) Earnings Beat Estimates in Q3, Revenues Lag
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Hawkins, Inc. (HWKN - Free Report) logged earnings of 71 cents per share in the third quarter of fiscal 2024 (ended Dec 31, 2023), up from 51 cents in the year-ago quarter. Earnings in the reported quarter topped the Zacks Consensus Estimate of 61 cents.
The company registered revenues of $208.5 million for the quarter, down nearly 4.9% year over year. It missed the Zacks Consensus Estimate of $221.2 million. While the Water Treatment segment saw increased sales, declines were observed in the Industrial and Health and Nutrition segments, offsetting the overall growth.
Industrial segment sales fell 19% year over year to $93 million in the reported quarter. Sales in the segment were affected by multiple factors, including the divestment of the company’s consumer bleach packaging business, decreased volumes and lower selling prices on certain products due to reduced raw material costs and competitive pricing pressures.
Sales from the Water Treatment segment climbed 20% year over year to $82 million. Sales were driven by higher selling prices on many of HWKN’s products and higher volumes for certain products.
Health and Nutrition segment sales fell 7% year over year to $33.5 million. This downtick stemmed from reduced sales of manufactured products, partly offset by increased sales of specialty distributed products.
Financials
The company ended the quarter with cash and cash equivalents of roughly $5.7 million, down around 49% sequentially. Long-term debt was roughly $109.8 million at the end of the quarter, up around 120% sequentially.
The net cash provided by operating activities was $117.6 million for nine months, ending Dec 31, 2023.
Outlook
With one quarter left in the fiscal year, Hawkins anticipates that its diverse business portfolio and overall robustness will enable it to sustain free cash flow generation and execute its growth strategy effectively.
The effective tax rate for the full year of fiscal 2024 is currently expected to be 25-26%.
Price Performance
Shares of Hawkins have gained 66.6% in a year compared with the industry’s rise of 15.7%.
Cameco has a projected earnings growth rate of 188% for the current year. The Zacks Consensus Estimate for CCJ’s current-year earnings has been revised upward by 12.5% in the past 60 days. The stock is up around 66.6% in a year.
The consensus estimate for CRS’s current fiscal year earnings is pegged at $3.97, indicating a year-over-year surge of 248.3%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have rallied 23.6% in the past year.
ANDE beat the Zacks Consensus Estimate in three of the last four quarters and missed one, with the average earnings surprise being 32.8%. The company’s shares have increased 41.6% in the past year.
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Hawkins (HWKN) Earnings Beat Estimates in Q3, Revenues Lag
Hawkins, Inc. (HWKN - Free Report) logged earnings of 71 cents per share in the third quarter of fiscal 2024 (ended Dec 31, 2023), up from 51 cents in the year-ago quarter. Earnings in the reported quarter topped the Zacks Consensus Estimate of 61 cents.
The company registered revenues of $208.5 million for the quarter, down nearly 4.9% year over year. It missed the Zacks Consensus Estimate of $221.2 million. While the Water Treatment segment saw increased sales, declines were observed in the Industrial and Health and Nutrition segments, offsetting the overall growth.
Hawkins, Inc. Price, Consensus and EPS Surprise
Hawkins, Inc. price-consensus-eps-surprise-chart | Hawkins, Inc. Quote
Segment Highlights
Industrial segment sales fell 19% year over year to $93 million in the reported quarter. Sales in the segment were affected by multiple factors, including the divestment of the company’s consumer bleach packaging business, decreased volumes and lower selling prices on certain products due to reduced raw material costs and competitive pricing pressures.
Sales from the Water Treatment segment climbed 20% year over year to $82 million. Sales were driven by higher selling prices on many of HWKN’s products and higher volumes for certain products.
Health and Nutrition segment sales fell 7% year over year to $33.5 million. This downtick stemmed from reduced sales of manufactured products, partly offset by increased sales of specialty distributed products.
Financials
The company ended the quarter with cash and cash equivalents of roughly $5.7 million, down around 49% sequentially. Long-term debt was roughly $109.8 million at the end of the quarter, up around 120% sequentially.
The net cash provided by operating activities was $117.6 million for nine months, ending Dec 31, 2023.
Outlook
With one quarter left in the fiscal year, Hawkins anticipates that its diverse business portfolio and overall robustness will enable it to sustain free cash flow generation and execute its growth strategy effectively.
The effective tax rate for the full year of fiscal 2024 is currently expected to be 25-26%.
Price Performance
Shares of Hawkins have gained 66.6% in a year compared with the industry’s rise of 15.7%.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
HWKN currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Cameco Corporation (CCJ - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and The Andersons (ANDE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cameco has a projected earnings growth rate of 188% for the current year. The Zacks Consensus Estimate for CCJ’s current-year earnings has been revised upward by 12.5% in the past 60 days. The stock is up around 66.6% in a year.
The consensus estimate for CRS’s current fiscal year earnings is pegged at $3.97, indicating a year-over-year surge of 248.3%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have rallied 23.6% in the past year.
ANDE beat the Zacks Consensus Estimate in three of the last four quarters and missed one, with the average earnings surprise being 32.8%. The company’s shares have increased 41.6% in the past year.