Hawkins (NASDAQ:HWKN) Issues Earnings Results, Misses Expectations By $0.04 EPS

Hawkins (NASDAQ:HWKN) released its earnings results on Wednesday. The specialty chemicals company reported $1.35 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.39 by ($0.04), FiscalAI reports. The business had revenue of $315.68 million for the quarter, compared to analyst estimates of $313.42 million. Hawkins had a net margin of 7.53% and a return on equity of 16.08%.

Here are the key takeaways from Hawkins’ conference call:

• Record operating cash flow in Fiscal 2026 funded $167 million in acquisitions, $58 million in capital investments, and $16 million in dividends, while management said the company’s financial condition remains very strong.
• Hawkins expanded its operating scale to nearly 2.5 billion pounds of products moved, 66 locations across 28 states, more than 400 delivery trucks, and nearly 1,200 employees serving customers in 48 states.
• Management plans to continue investing in new Water Treatment Group branches and higher-margin businesses, while maintaining a prudent approach to capital expenditures and acquisitions.
• All eight director nominees were elected, and shareholders approved the ratification of Deloitte & Touche as auditor and the advisory vote on executive compensation; no shareholder questions were submitted.

Hawkins Trading Down 7.8%

NASDAQ:HWKN traded down $10.79 on Thursday, reaching $127.81. The company’s stock had a trading volume of 203,930 shares, compared to its average volume of 164,705. Hawkins has a 1-year low of $117.98 and a 1-year high of $186.15. The business’s 50-day moving average price is $149.50 and its two-hundred day moving average price is $150.29. The firm has a market cap of $2.67 billion, a PE ratio of 32.91, a PEG ratio of 2.58 and a beta of 0.78. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.46 and a current ratio of 2.21.

Hawkins Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 14th will be issued a $0.19 dividend. The ex-dividend date of this dividend is Friday, August 14th. This represents a $0.76 annualized dividend and a dividend yield of 0.6%. Hawkins’s payout ratio is 19.44%.

Trending Headlines about Hawkins

Here are the key news stories impacting Hawkins this week:

• Positive Sentiment: Record revenue and broad-based growth: Fiscal Q1 revenue rose 8% year over year to $315.7 million, exceeding the $313.4 million consensus estimate. Water Treatment sales increased 6%, Food and Health Sciences rose 9%, and Industrial Solutions grew 10%. Hawkins fiscal first-quarter results
• Positive Sentiment: Dividend increased: Hawkins announced a 5% increase in its quarterly cash dividend to $0.20 per share, payable August 28 to shareholders of record August 14. The increase signals continued confidence in cash generation, although the roughly 0.5% yield is modest. Hawkins dividend increase
• Positive Sentiment: Cash flow and acquisition activity were constructive: Operating cash flow rose 12% to $35.2 million, free cash flow reached $23.5 million, and the company repurchased $7 million of stock. Hawkins also acquired Aqua-Chem, a water-treatment products distributor serving Nebraska and Iowa.
• Neutral Sentiment: Insider activity was supportive but institutional positioning was mixed: An insider reportedly purchased 3,000 shares during the past six months, while recent institutional filings showed both sizable additions and reductions.
• Negative Sentiment: Earnings missed expectations: Adjusted earnings of $1.35 per share fell from $1.40 a year earlier and came in below analyst estimates ranging from $1.39 to $1.41. Net income declined 3% to $28.3 million, while gross profit increased only 2% to $74 million, suggesting margin pressure.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the stock. Weiss Ratings downgraded shares of Hawkins from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, July 14th. Barclays set a $170.00 price objective on shares of Hawkins and gave the company an “equal weight” rating in a research note on Tuesday, June 30th. One analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $185.00.

Institutional Trading of Hawkins

A number of large investors have recently bought and sold shares of the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Hawkins by 9.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 52,778 shares of the specialty chemicals company’s stock worth $5,590,000 after acquiring an additional 4,400 shares during the period. Neuberger Berman Group LLC increased its holdings in Hawkins by 0.8% during the 4th quarter. Neuberger Berman Group LLC now owns 44,344 shares of the specialty chemicals company’s stock worth $6,300,000 after purchasing an additional 331 shares in the last quarter. Swiss National Bank raised its stake in shares of Hawkins by 1.1% in the 3rd quarter. Swiss National Bank now owns 38,388 shares of the specialty chemicals company’s stock valued at $7,014,000 after purchasing an additional 400 shares during the period. Ameriprise Financial Inc. raised its stake in shares of Hawkins by 41.0% in the 2nd quarter. Ameriprise Financial Inc. now owns 60,726 shares of the specialty chemicals company’s stock valued at $8,629,000 after purchasing an additional 17,658 shares during the period. Finally, Nuveen LLC lifted its holdings in shares of Hawkins by 4.6% in the fourth quarter. Nuveen LLC now owns 62,507 shares of the specialty chemicals company’s stock valued at $8,880,000 after purchasing an additional 2,734 shares in the last quarter. 69.71% of the stock is owned by institutional investors.

About Hawkins

Hawkins, Inc (NASDAQ: HWKN) is a specialty chemical company that produces and distributes water-treatment and industrial chemicals across North America. Founded in 1938 and headquartered in Roseville, Minnesota, the company has built a network of manufacturing facilities and distribution centers that serve municipal, industrial and commercial customers. As a publicly traded entity, Hawkins leverages its long-standing presence in the chemical distribution industry to provide tailored solutions for complex water-treatment challenges and specialty chemical needs.

Hawkins’ product portfolio encompasses a wide range of chemicals, including sodium hypochlorite, sodium hydroxide, hydrogen peroxide, chlorine, acids and specialty blends.