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Hawkins (HWKN) Earnings and Revenues Top Estimates in Q4

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Hawkins, Inc. (HWKN - Free Report) logged earnings of 50 cents per share for fourth-quarter fiscal 2022 (ended Apr 3, 2022), up from 43 cents in the year-ago quarter. Earnings for the reported quarter topped the Zacks Consensus Estimate of 43 cents.

The company registered revenues of $223 million for the quarter, up roughly 37% year over year. It also surpassed the Zacks Consensus Estimate of $188.9 million. The top line was driven by strong sales gains across Industrial and Water Treatment segments.

Segment Highlights

Industrial segment sales went up 54% year over year to $117.4 million in the reported quarter, driven by the impact of an extra week in the quarter, higher sales volumes of both bulk and manufactured, blended and repackaged products, as well as higher selling prices led by increased costs on many of the company's raw materials.

Sales from the Water Treatment segment climbed 45% year over year to $60 million. Sales were driven by the impact an extra week, added sales from the acquisitions and higher demand for the company’s products.
 
Health and Nutrition segment sales edged up 1% year over year to $45.6 million. Additional sales from the extra week in the quarter were offset by the normalizing of demand for manufactured products.

Fiscal 2022 Results

Earnings or fiscal 2022 were $2.44 per share, up from $1.93 a year ago. Revenues were $774.5 million for the full year, up around 30% year over year.

Financial

The company ended fiscal 2022 with cash and cash equivalents of roughly $3.5 million, up around 17% year over year. Long-term debt was roughly $115.6 million at the end of the fiscal, up around 30% year over year.

Net cash provided by operating activities was $42.8 million for fiscal 2022, compared with $43.8 million a year ago.

Outlook

Moving ahead, the company noted that it looks forward to continue its revenue growth into fiscal 2023 and manage its cost structure to drive the bottom line. Hawkins made significant investments in added personnel and other resources in fiscal 2022, which it expects to leverage in the coming years to grow the business.

Price Performance

Shares of Hawkins have gained 20.7% over a year compared with the industry’s decline of 15.4%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Zacks Rank & Key Picks

Hawkins currently carries a Zacks Rank #2 (Buy)

Other top-ranked stocks worth considering in the basic materials space include Commercial Metals Company (CMC - Free Report) , Nutrien Ltd. (NTR - Free Report) and Steel Dynamics, Inc. (STLD - Free Report) .

Commercial Metals, carrying a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 31.9% upward over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 16%, on average. CMC has gained around 19% in a year.

Nutrien, sporting a Zacks Rank #1, has an expected earnings growth rate of 161.9% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 38.8% upward over the last 60 days.

Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 5.8%, on average. NTR has rallied around 69% in a year.

Steel Dynamics, carrying a Zacks Rank #2, has an expected earnings growth rate of 28.6% for the current year. The Zacks Consensus Estimate for STLD's current-year earnings has been revised 43.8% upward over the last 60 days.

Steel Dynamics beat the Zacks Consensus Estimate for earnings in each of the last four quarters, the average being roughly 2.5%. STLD has gained around 23% in a year.

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