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Hawkins (HWKN) Q3 Earnings and Revenues Top Estimates
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Hawkins, Inc. (HWKN - Free Report) logged earnings of 48 cents per share for third-quarter fiscal 2022 (ended Dec 26, 2021), up from 37 cents in the year-ago quarter. Earnings for the reported quarter topped the Zacks Consensus Estimate of 39 cents.
The company registered revenues of $187.1 million for the quarter, up roughly 31% year over year. It also surpassed the Zacks Consensus Estimate of $156.8 million. The top line was driven by higher volumes across the Industrial and Water Treatment segments in most end-markets. Industrial sales gained from significant growth in the company’s agricultural, pharmaceutical and food ingredient product lines.
Industrial segment sales went up 56% year over year to $100.6 million in the reported quarter, aided by 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 its raw materials.
Sales from the Water Treatment segment rose 27% year over year to $49.8 million. Sales were driven by added sales from the acquisitions and higher demand for many of the company’s products.
Health and Nutrition segment sales fell 7% year over year to $36.7 million. The downside is attributable to reduced sales of the company’s manufactured products, partly masked by higher sales of its specialty distributed products.
Financial
The company ended the quarter with cash and cash equivalents of roughly $23.4 million, up nearly three fold year over year. Long-term debt was roughly $105.9 million at the end of the quarter, up around 23% year over year.
Net cash provided by operating activities was $38.7 million for the first nine months of fiscal 2022, compared with $26.6 million for the same period a year ago.
Outlook
Moving ahead, the company does not expect the current supply-chain headwinds or raw material cost inflation to abate any time soon. It will continue to allocate capital through reinvestments in the business, pay out dividend, and look for opportunistic acquisitions to broaden its geographical and product portfolios, Hawkins noted.
Price Performance
Shares of Hawkins have gained 31.2% over a year compared with the industry’s decline of 8.4%.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Hawkins currently carries a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks worth considering in the basic materials space include Commercial Metals Company (CMC - Free Report) , Albemarle Corporation (ALB - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Commercial Metals, sporting a Zacks Rank #1, has a projected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 39.5% 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 13.1%, on average. CMC has rallied around 72% in a year.
Albemarle, carrying a Zacks Rank #1, has an expected earnings growth rate of 51.5% for the current year. ALB's consensus estimate for the current year has been revised 5.6% upward over the past 60 days.
Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 22.1%. ALB shares have gained around 37% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 5.3% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 84% in a year.
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Hawkins (HWKN) Q3 Earnings and Revenues Top Estimates
Hawkins, Inc. (HWKN - Free Report) logged earnings of 48 cents per share for third-quarter fiscal 2022 (ended Dec 26, 2021), up from 37 cents in the year-ago quarter. Earnings for the reported quarter topped the Zacks Consensus Estimate of 39 cents.
The company registered revenues of $187.1 million for the quarter, up roughly 31% year over year. It also surpassed the Zacks Consensus Estimate of $156.8 million. The top line was driven by higher volumes across the Industrial and Water Treatment segments in most end-markets. Industrial sales gained from significant growth in the company’s agricultural, pharmaceutical and food ingredient product lines.
Hawkins, Inc. Price, Consensus and EPS Surprise
Hawkins, Inc. price-consensus-eps-surprise-chart | Hawkins, Inc. Quote
Segment Highlights
Industrial segment sales went up 56% year over year to $100.6 million in the reported quarter, aided by 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 its raw materials.
Sales from the Water Treatment segment rose 27% year over year to $49.8 million. Sales were driven by added sales from the acquisitions and higher demand for many of the company’s products.
Health and Nutrition segment sales fell 7% year over year to $36.7 million. The downside is attributable to reduced sales of the company’s manufactured products, partly masked by higher sales of its specialty distributed products.
Financial
The company ended the quarter with cash and cash equivalents of roughly $23.4 million, up nearly three fold year over year. Long-term debt was roughly $105.9 million at the end of the quarter, up around 23% year over year.
Net cash provided by operating activities was $38.7 million for the first nine months of fiscal 2022, compared with $26.6 million for the same period a year ago.
Outlook
Moving ahead, the company does not expect the current supply-chain headwinds or raw material cost inflation to abate any time soon. It will continue to allocate capital through reinvestments in the business, pay out dividend, and look for opportunistic acquisitions to broaden its geographical and product portfolios, Hawkins noted.
Price Performance
Shares of Hawkins have gained 31.2% over a year compared with the industry’s decline of 8.4%.
Zacks Rank & Other Key Picks
Hawkins currently carries a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks worth considering in the basic materials space include Commercial Metals Company (CMC - Free Report) , Albemarle Corporation (ALB - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Commercial Metals, sporting a Zacks Rank #1, has a projected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 39.5% 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 13.1%, on average. CMC has rallied around 72% in a year.
Albemarle, carrying a Zacks Rank #1, has an expected earnings growth rate of 51.5% for the current year. ALB's consensus estimate for the current year has been revised 5.6% upward over the past 60 days.
Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 22.1%. ALB shares have gained around 37% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 5.3% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 84% in a year.