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Hawkins (HWKN) Scales 52-Week High: What's Driving the Stock?
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Hawkins, Inc.’s (HWKN - Free Report) shares touched a fresh 52-week high of $65.12 on Dec 6, before closing at $61.32.
In the past year, Hawkins’ shares have surged 50.2% compared with the industry’s 11% rise in the same period.
Image Source: Zacks Investment Research
What’s Driving Hawkins?
In the second quarter of fiscal 2024, the company delivered robust results, experiencing a 27.9% increase in earnings from the previous quarter’s levels. The Water Treatment segment demonstrated strong performance, with an impressive 17% year-over-year growth in revenues and a remarkable 70% surge in operating income. This success can be attributed to profit expansion in the company's existing business and recent strategic acquisitions, including the integration of EcoTech Enterprises in July, which reinforced its position in the water treatment market.
Leveraging its solid financial position, Hawkins continued to strengthen its Water Treatment portfolio by adding six additional locations through two acquisitions after the quarter’s end. With a positive outlook for sustained growth, the company anticipates continuous expansion in the Water Treatment segment throughout the year.
During the fiscal second quarter, the company utilized its record quarterly operating cash flow to repay $28.6 million in debt, bringing the total outstanding debt to $60 million. This marks a noteworthy reduction in the debt-to-trailing 12-month adjusted EBITDA ratio, now standing at 0.45x and down from the 0.96x reported at the end of the fiscal 2023.
Exceeding expectations, the company reported earnings of $1.10 per share in the second quarter of fiscal 2024, surpassing the Zacks Consensus Estimate of $1. This marks the fourth consecutive quarter in which the company outperformed earnings projections, with an average surprise of 27.5%.
With a positive trajectory, the consensus estimate for earnings in the current fiscal year has been revised upward by 1.7% in the past 60 days. The Zacks Consensus Estimate for fiscal 2024 earnings is pegged at $3.46 per share, indicating 20.9% year-over-year growth. These favorable estimate revisions instill confidence among investors in the company's performance and prospects.
The consensus estimate for AXTA’s current-year earnings is pegged at $1.58, indicating year-over-year growth of 6.8%. AXTA beat the Zacks Consensus Estimate in three of the last four quarters and missed one, with the average earnings surprise being 6.7%. The company’s shares have increased 23.2% in the past year.
The Zacks Consensus Estimate for ANDE’s current-year earnings has been revised upward by 5.1% in 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 32.8% on average. ANDE’s shares have rallied around 45% in a year.
The consensus estimate for Alamos’ current fiscal year earnings is pegged at 53 cents, indicating a year-over-year surge of 89.3%. AGI beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 25.6%. The company’s shares have surged 42.2% in the past year.
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Hawkins (HWKN) Scales 52-Week High: What's Driving the Stock?
Hawkins, Inc.’s (HWKN - Free Report) shares touched a fresh 52-week high of $65.12 on Dec 6, before closing at $61.32.
In the past year, Hawkins’ shares have surged 50.2% compared with the industry’s 11% rise in the same period.
Image Source: Zacks Investment Research
What’s Driving Hawkins?
In the second quarter of fiscal 2024, the company delivered robust results, experiencing a 27.9% increase in earnings from the previous quarter’s levels. The Water Treatment segment demonstrated strong performance, with an impressive 17% year-over-year growth in revenues and a remarkable 70% surge in operating income. This success can be attributed to profit expansion in the company's existing business and recent strategic acquisitions, including the integration of EcoTech Enterprises in July, which reinforced its position in the water treatment market.
Leveraging its solid financial position, Hawkins continued to strengthen its Water Treatment portfolio by adding six additional locations through two acquisitions after the quarter’s end. With a positive outlook for sustained growth, the company anticipates continuous expansion in the Water Treatment segment throughout the year.
During the fiscal second quarter, the company utilized its record quarterly operating cash flow to repay $28.6 million in debt, bringing the total outstanding debt to $60 million. This marks a noteworthy reduction in the debt-to-trailing 12-month adjusted EBITDA ratio, now standing at 0.45x and down from the 0.96x reported at the end of the fiscal 2023.
Exceeding expectations, the company reported earnings of $1.10 per share in the second quarter of fiscal 2024, surpassing the Zacks Consensus Estimate of $1. This marks the fourth consecutive quarter in which the company outperformed earnings projections, with an average surprise of 27.5%.
With a positive trajectory, the consensus estimate for earnings in the current fiscal year has been revised upward by 1.7% in the past 60 days. The Zacks Consensus Estimate for fiscal 2024 earnings is pegged at $3.46 per share, indicating 20.9% year-over-year growth. These favorable estimate revisions instill confidence among investors in the company's performance and prospects.
Hawkins, Inc. Price and Consensus
Hawkins, Inc. price-consensus-chart | Hawkins, Inc. Quote
Zacks Rank & Other Key Picks
Hawkins currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Axalta Coating Systems Ltd. (AXTA - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and The Andersons Inc. (ANDE - Free Report) and Alamos Gold Inc. (AGI - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for AXTA’s current-year earnings is pegged at $1.58, indicating year-over-year growth of 6.8%. AXTA beat the Zacks Consensus Estimate in three of the last four quarters and missed one, with the average earnings surprise being 6.7%. The company’s shares have increased 23.2% in the past year.
The Zacks Consensus Estimate for ANDE’s current-year earnings has been revised upward by 5.1% in 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 32.8% on average. ANDE’s shares have rallied around 45% in a year.
The consensus estimate for Alamos’ current fiscal year earnings is pegged at 53 cents, indicating a year-over-year surge of 89.3%. AGI beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 25.6%. The company’s shares have surged 42.2% in the past year.