Hawkins (NASDAQ:HWKN) Issues Earnings Results, Beats Estimates By $0.15 EPS

Hawkins (NASDAQ:HWKN) released its quarterly earnings data on Monday. The specialty chemicals company reported $1.34 earnings per share for the quarter, beating the consensus estimate of $1.19 by $0.15, FiscalAI reports. The company had revenue of $313.82 million during the quarter, compared to analyst estimates of $302.70 million.

Hawkins Trading Down 1.3%

HWKN stock traded down $1.97 during mid-day trading on Wednesday, reaching $151.88. The company’s stock had a trading volume of 22,062 shares, compared to its average volume of 163,534. Hawkins has a 12 month low of $116.04 and a 12 month high of $174.12. The business’s 50 day moving average price is $126.89 and its 200 day moving average price is $143.17.

Hawkins Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 25th. Stockholders of record on Wednesday, November 11th will be paid a $0.20 dividend. The ex-dividend date of this dividend is Tuesday, November 10th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.5%. This is an increase from Hawkins’s previous quarterly dividend of $0.19.

Insider Buying and Selling at Hawkins

In other news, CFO Jeffrey Oldenkamp bought 1,290 shares of the firm’s stock in a transaction on Thursday, August 27th. The stock was acquired at an average cost of $119.00 per share, with a total value of $153,510.00. Following the completion of the transaction, the chief financial officer directly owned 104,223 shares of the company’s stock, valued at $12,402,537. This represents a 1.25% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Douglas Lange bought 910 shares of Hawkins stock in a transaction that occurred on Tuesday, August 25th. The shares were acquired at an average price of $118.75 per share, with a total value of $108,062.50. Following the completion of the transaction, the vice president owned 28,169 shares of the company’s stock, valued at $3,345,068.75. This represents a 3.34% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 3.70% of the company’s stock.

More Hawkins News

Here are the key news stories impacting Hawkins this week:

• Positive Sentiment: Strong earnings and revenue beat: Hawkins reported fiscal Q2 EPS of $1.34, above estimates of $1.19, while revenue reached $313.8 million versus the $302.7 million consensus. EPS rose from $1.08 a year earlier, supported by higher gross profit, operating income and net income. Hawkins fiscal second-quarter results
• Positive Sentiment: Resilient performance: Coverage characterized Hawkins as resistant to the downturn affecting the broader chemicals industry. Operating cash flow was approximately $40.3 million, suggesting the earnings improvement was accompanied by solid cash generation. Why Hawkins stock outperformed
• Positive Sentiment: Analyst support and technical momentum: BWS Financial reaffirmed its buy rating and set a $200 price target, implying substantial upside from the cited $153.85 level. The stock also moved above its 200-day moving average, currently around $143.17, a potentially bullish technical signal. Hawkins stock moves above its 200-day moving average
• Positive Sentiment: Dividend raised: Hawkins increased its quarterly dividend 5.3% to $0.20 per share, payable November 25, for an annualized payout of $0.80. The increase reinforces the company’s shareholder-return profile, although the indicated yield is approximately 0.5%. Hawkins dividend announcement
• Negative Sentiment: Valuation is a concern: One analysis concluded that HWKN appears fully priced based on its current cash-flow outlook. After the post-earnings advance, investors may demand continued earnings growth to justify the stock’s valuation and approach the $200 price target. Hawkins valuation analysis

Wall Street Analysts Forecast Growth

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

Hawkins Company Profile

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.