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Hawkins' (HWKN) Shares Rally 25% in 3 Months: Here's Why
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Hawkins, Inc.’s (HWKN - Free Report) shares have rallied 24.7% over the past three months. The rally has resulted in the stock outperforming its industry’s rise of 18.6% over the same time frame. The company has also topped the S&P 500’s roughly 4.9% rise over the same period.
Image Source: Zacks Investment Research
Let’s take a look at the factors that are driving this Zacks Rank #1 (Strong Buy) stock.
What’s Going in Hawkins’ Favor?
The company achieved robust results in the first quarter of fiscal 2024, with an impressive 101.8% surge in net income compared to the prior quarter. This remarkable performance was mirrored by 10% growth in revenues from the preceding quarter.
Particularly noteworthy was the exceptional performance of the Water Treatment segment, which displayed a 19% year-over-year increase in revenues and an impressive 70% growth in operating income. This success underscores the company's strategic emphasis on this sector by effectively expanding its core business and integrating recent acquisitions. The recent addition of EcoTech Enterprises in July further fortified the company's standing in the water treatment market.
A central driver behind the Water Treatment segment's expansion has been the company's astute pricing strategy. In response to escalating raw material expenses, the company adapted its pricing for various products, effectively boosting sales.
While maintaining a cautious stance, the company holds an optimistic outlook for the Industrial segment. Acknowledging potential challenges stemming from economic pressure that impacted customer demand, the company remains confident in its ability to adeptly navigate these hurdles and sustain its growth trajectory.
Furthermore, the company is unwavering in its commitment to enhancing shareholder value. In fiscal year 2023, Hawkins disbursed dividends totaling $12 million and allocated $6.6 million to stock repurchases. Demonstrating this commitment, the company has raised its quarterly dividend by 7% to 16 cents per share.
During the first quarter of fiscal 2024, Hawkins surpassed expectations by reporting earnings of $1.12 per share, surpassing the Zacks Consensus Estimate of 61 cents. Impressively, the company has consistently outperformed earnings projections in the last four quarters, boasting an average beat of 25.6%.
The consensus estimate for earnings for the current fiscal year has been revised upward by 32.3% in the past 60 days. The Zacks Consensus Estimate for fiscal 2024 earnings stands at $3.40 per share, reflecting an impressive 18.9% growth from the previous year's reported figure.
The consensus estimate for the second quarter of fiscal 2024 has also been revised 42.9% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
The earnings estimate for Carpenter Technology’s current year is pegged at $3.36, indicating year-over-year growth of 194%. CRS beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 10%. The company’s shares have rallied 56.3% in the past year.
The Zacks Consensus Estimate for Andersons’ current-year earnings has been revised 21.8% upward in the past 60 days. ANDE beat the Zacks Consensus Estimate in the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4% on average. The company’s shares have risen roughly 26.3% in the past year.
The consensus estimate for Livent’s current-year earnings is pegged at $2.12, indicating year-over-year growth of 51.4%. In the past 60 days, LTHM’s current-year earnings estimate has been revised upward by 3.4%. LTHM beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 19%.
Image: Bigstock
Hawkins' (HWKN) Shares Rally 25% in 3 Months: Here's Why
Hawkins, Inc.’s (HWKN - Free Report) shares have rallied 24.7% over the past three months. The rally has resulted in the stock outperforming its industry’s rise of 18.6% over the same time frame. The company has also topped the S&P 500’s roughly 4.9% rise over the same period.
Image Source: Zacks Investment Research
Let’s take a look at the factors that are driving this Zacks Rank #1 (Strong Buy) stock.
What’s Going in Hawkins’ Favor?
The company achieved robust results in the first quarter of fiscal 2024, with an impressive 101.8% surge in net income compared to the prior quarter. This remarkable performance was mirrored by 10% growth in revenues from the preceding quarter.
Particularly noteworthy was the exceptional performance of the Water Treatment segment, which displayed a 19% year-over-year increase in revenues and an impressive 70% growth in operating income. This success underscores the company's strategic emphasis on this sector by effectively expanding its core business and integrating recent acquisitions. The recent addition of EcoTech Enterprises in July further fortified the company's standing in the water treatment market.
A central driver behind the Water Treatment segment's expansion has been the company's astute pricing strategy. In response to escalating raw material expenses, the company adapted its pricing for various products, effectively boosting sales.
While maintaining a cautious stance, the company holds an optimistic outlook for the Industrial segment. Acknowledging potential challenges stemming from economic pressure that impacted customer demand, the company remains confident in its ability to adeptly navigate these hurdles and sustain its growth trajectory.
Furthermore, the company is unwavering in its commitment to enhancing shareholder value. In fiscal year 2023, Hawkins disbursed dividends totaling $12 million and allocated $6.6 million to stock repurchases. Demonstrating this commitment, the company has raised its quarterly dividend by 7% to 16 cents per share.
During the first quarter of fiscal 2024, Hawkins surpassed expectations by reporting earnings of $1.12 per share, surpassing the Zacks Consensus Estimate of 61 cents. Impressively, the company has consistently outperformed earnings projections in the last four quarters, boasting an average beat of 25.6%.
The consensus estimate for earnings for the current fiscal year has been revised upward by 32.3% in the past 60 days. The Zacks Consensus Estimate for fiscal 2024 earnings stands at $3.40 per share, reflecting an impressive 18.9% growth from the previous year's reported figure.
The consensus estimate for the second quarter of fiscal 2024 has also been revised 42.9% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
Hawkins, Inc. Price and Consensus
Hawkins, Inc. price-consensus-chart | Hawkins, Inc. Quote
Zacks Rank & Other Key Picks
Some other top-ranked stocks in the Basic Materials space are Carpenter Technology Corporation (CRS - Free Report) and The Andersons, Inc. (ANDE - Free Report) , both sporting a Zacks Rank #1, and Livent Corporation , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The earnings estimate for Carpenter Technology’s current year is pegged at $3.36, indicating year-over-year growth of 194%. CRS beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 10%. The company’s shares have rallied 56.3% in the past year.
The Zacks Consensus Estimate for Andersons’ current-year earnings has been revised 21.8% upward in the past 60 days. ANDE beat the Zacks Consensus Estimate in the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4% on average. The company’s shares have risen roughly 26.3% in the past year.
The consensus estimate for Livent’s current-year earnings is pegged at $2.12, indicating year-over-year growth of 51.4%. In the past 60 days, LTHM’s current-year earnings estimate has been revised upward by 3.4%. LTHM beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 19%.