Hawkins (NASDAQ:HWKN) Releases Quarterly Earnings Results, Beats Expectations By $0.15 EPS

Hawkins (NASDAQ:HWKN) announced its earnings results on Monday. The specialty chemicals company reported $1.34 EPS for the quarter, topping the consensus estimate of $1.19 by $0.15, FiscalAI reports. Hawkins had a return on equity of 15.42% and a net margin of 7.29%. The firm had revenue of $313.82 million for the quarter, compared to the consensus estimate of $302.70 million.

Hawkins Stock Up 2.4%

HWKN stock opened at $135.44 on Tuesday. Hawkins has a twelve month low of $116.04 and a twelve month high of $174.12. The firm has a market cap of $2.83 billion, a PE ratio of 35.09, a price-to-earnings-growth ratio of 2.71 and a beta of 0.74. The business has a 50 day moving average of $126.44 and a 200 day moving average of $143.14. The company has a quick ratio of 1.54, a current ratio of 2.27 and a debt-to-equity ratio of 0.45.

Hawkins Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, November 25th. Investors of record on Wednesday, November 11th will be paid a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Wednesday, November 11th. This is a positive change from Hawkins’s previous quarterly dividend of $0.19. Hawkins’s dividend payout ratio (DPR) is 20.73%.

Insider Activity at Hawkins

In other Hawkins news, CFO Jeffrey Oldenkamp bought 1,290 shares of Hawkins stock in a transaction on Thursday, August 27th. The stock was acquired at an average price of $119.00 per share, with a total value of $153,510.00. Following the acquisition, the chief financial officer owned 104,223 shares in the company, valued at approximately $12,402,537. This trade represents a 1.25% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Douglas Lange purchased 910 shares of the company’s stock in a transaction dated Tuesday, August 25th. The shares were bought at an average cost of $118.75 per share, for a total transaction of $108,062.50. Following the acquisition, the vice president owned 28,169 shares in the company, valued at approximately $3,345,068.75. The trade was a 3.34% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 3.70% of the company’s stock.

Analyst Ratings Changes

Several research firms have weighed in on HWKN. Zacks Research downgraded shares of Hawkins from a “hold” rating to a “strong sell” rating in a report on Tuesday, August 4th. BWS Financial restated a “buy” rating and issued a $200.00 target price on shares of Hawkins in a research note on Monday, August 3rd. Weiss Ratings upgraded shares of Hawkins from a “hold (c)” rating to a “hold (c+)” rating in a research note on Monday, September 21st. Finally, Barclays set a $141.00 price objective on shares of Hawkins and gave the company an “equal weight” rating in a research note on Tuesday, October 13th. One research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Hawkins presently has an average rating of “Hold” and a consensus target price of $170.50.

Key Headlines Impacting Hawkins

Here are the key news stories impacting Hawkins this week:

• Positive Sentiment: Quarterly earnings beat estimates: Hawkins reported fiscal Q2 EPS of $1.34, up from $1.08 a year earlier and ahead of the $1.19–$1.22 analyst consensus. Revenue increased 11.9% year over year to approximately $313.8 million, exceeding estimates near $302.7 million. Hawkins fiscal second-quarter results
• Positive Sentiment: Profitability and cash generation improved: Gross profit rose to $76.6 million, operating profit reached $41.9 million and net income attributable to common shareholders increased to $27.8 million. Operating cash flow was $40.3 million, supporting the view that earnings growth was backed by solid cash generation. Hawkins shares rise after-hours
• Positive Sentiment: Dividend increased: The board raised the quarterly dividend 5.3% to $0.20 per share, payable November 25 to shareholders of record on November 11. The annualized payout is $0.80 per share, although the yield is modest at roughly 0.6%. Hawkins dividend announcement
• Positive Sentiment: Insider buying provides an additional supportive signal: Company executives reportedly purchased Hawkins shares during the past six months, with no insider sales cited in the report.
• Neutral Sentiment: Despite the earnings-driven advance, HWKN trades at an elevated price-to-earnings ratio of approximately 35 and remains below its 200-day moving average, factors that investors may weigh when assessing whether the rally can continue.

About Hawkins

Hawkins, Inc (NASDAQ:HWKN) is a chemical manufacturer, blender and distributor serving customers across the United States. The company supplies a range of water treatment chemicals, industrial chemicals and specialty products to municipal, commercial and industrial users.

Its water treatment business provides chemicals and related solutions used in drinking water, wastewater and industrial water treatment applications. Hawkins also serves the industrial, health and nutrition, and specialty chemical markets, offering products such as chemical blends, custom formulations and other materials used in manufacturing, agriculture, food processing and pharmaceutical applications.

Founded in 1938, Hawkins is headquartered in Roseville, Minnesota, and operates through a network of manufacturing, blending, distribution and sales locations in the United States.