We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Hawkins (HWKN) Earnings Beat Estimates in Q2, Revenues Lag
Read MoreHide Full Article
Hawkins, Inc. (HWKN - Free Report) logged earnings of $1.10 per share for second quarter of fiscal 2024 (ended Oct 1, 2023), up from 86 cents in the year-ago quarter. Earnings for the reported quarter topped the Zacks Consensus Estimate of $1.00.
The company registered revenues of $236.5 million for the quarter, down roughly 2% year over year. It missed the Zacks Consensus Estimate of $250.2 million. Lower sales across Industrial and Health and Nutrition segments more than offset gains in the Water Treatment unit.
Industrial segment sales fell 14% year over year to $98.5 million in the reported quarter. Sales in this segment were impacted by the divestment of the company’s consumer bleach packaging business and lower volumes.
Sales from the Water Treatment segment climbed 17% year over year to $100.9 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 9% year over year to $37.1 million. Sales were hurt by lower customer demand driven by excess inventory at some of the company’s customers as well as reduced demand for health and immunity products.
Financials
The company ended the quarter with cash and cash equivalents of roughly $11 million, up around 56% sequentially. Long-term debt was roughly $49.8 million at the end of the quarter, down around 36% year over year.
Net cash provided by operating activities was $92.6 million for six months ended Oct 1, 2023.
Outlook
Moving ahead, the company sees continued growth in the Water Treatment unit for the remainder of 2023 and remains cautiously optimistic about the Industrial segment. It expects the Health and Nutrition distribution business to improve on a year-over-year basis starting in calendar 2024.
Price Performance
Shares of Hawkins have gained 44.6% over a year compared with the industry’s rise of 11%.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
HWKN currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks worth a look in the basic materials space include Koppers Holdings Inc. (KOP - Free Report) , WestRock Company (WRK - Free Report) and The Andersons Inc. (ANDE - Free Report) .
Koppers has a trailing four-quarter earnings surprise of roughly 21.7%, on average. KOP shares have rallied around 34% in a year.
In the past 60 days, the Zacks Consensus Estimate for WestRock’s current fiscal year has been revised upward by 5.2%. WRK, carrying a Zacks Rank #2, beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 30.7%. The company’s shares have gained 3% in the past year. The company’s shares have gained 8% in the past year.
Andersons currently carries a Zacks Rank #1. The Zacks Consensus Estimate for ANDE's current-year earnings has been revised 3.3% upward over the past 60 days.
Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average. ANDE shares have rallied around 38% in a year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Hawkins (HWKN) Earnings Beat Estimates in Q2, Revenues Lag
Hawkins, Inc. (HWKN - Free Report) logged earnings of $1.10 per share for second quarter of fiscal 2024 (ended Oct 1, 2023), up from 86 cents in the year-ago quarter. Earnings for the reported quarter topped the Zacks Consensus Estimate of $1.00.
The company registered revenues of $236.5 million for the quarter, down roughly 2% year over year. It missed the Zacks Consensus Estimate of $250.2 million. Lower sales across Industrial and Health and Nutrition segments more than offset gains in the Water Treatment unit.
Hawkins, Inc. Price, Consensus and EPS Surprise
Hawkins, Inc. price-consensus-eps-surprise-chart | Hawkins, Inc. Quote
Segment Highlights
Industrial segment sales fell 14% year over year to $98.5 million in the reported quarter. Sales in this segment were impacted by the divestment of the company’s consumer bleach packaging business and lower volumes.
Sales from the Water Treatment segment climbed 17% year over year to $100.9 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 9% year over year to $37.1 million. Sales were hurt by lower customer demand driven by excess inventory at some of the company’s customers as well as reduced demand for health and immunity products.
Financials
The company ended the quarter with cash and cash equivalents of roughly $11 million, up around 56% sequentially. Long-term debt was roughly $49.8 million at the end of the quarter, down around 36% year over year.
Net cash provided by operating activities was $92.6 million for six months ended Oct 1, 2023.
Outlook
Moving ahead, the company sees continued growth in the Water Treatment unit for the remainder of 2023 and remains cautiously optimistic about the Industrial segment. It expects the Health and Nutrition distribution business to improve on a year-over-year basis starting in calendar 2024.
Price Performance
Shares of Hawkins have gained 44.6% over a year compared with the industry’s rise of 11%.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
HWKN currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks worth a look in the basic materials space include Koppers Holdings Inc. (KOP - Free Report) , WestRock Company (WRK - Free Report) and The Andersons Inc. (ANDE - Free Report) .
Koppers has a projected earnings growth rate of 7.5% for the current year. It currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Koppers has a trailing four-quarter earnings surprise of roughly 21.7%, on average. KOP shares have rallied around 34% in a year.
In the past 60 days, the Zacks Consensus Estimate for WestRock’s current fiscal year has been revised upward by 5.2%. WRK, carrying a Zacks Rank #2, beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 30.7%. The company’s shares have gained 3% in the past year. The company’s shares have gained 8% in the past year.
Andersons currently carries a Zacks Rank #1. The Zacks Consensus Estimate for ANDE's current-year earnings has been revised 3.3% upward over the past 60 days.
Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average. ANDE shares have rallied around 38% in a year.