NASDAQ$HWKN

Hawkins Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Hawkins reported record second quarter performance with sales, gross profit, operating income, net income and EPS increasing year-over-year.

Hawkins, Inc. announced record second quarter fiscal 2023 results, with sales increasing by 32% year-over-year. The company reported growth across all three reporting segments, driven primarily by price increases. EPS increased by 28% compared to the same period last year.

  • Record second quarter performance for sales, gross profit, operating income, net income, and EPS.
  • Sales increased by 32% year-over-year, with growth in all three reporting segments.
  • Gross profit increased by 24% year-over-year, contributing to a 35% increase in operating income.
  • EPS increased by 28% compared to the same period last year.

Headline financials

Total Revenue

$241M

Previous: $183M+31.6%
EPS (adj)

$0.86

Previous: $0.67+28.4%
Capital Expenditures

-$20.7M

Previous: -$6.9M-199.4%
Free Cash Flow

-$2.67M

Previous: $7.23M-136.9%
Net Income

$18M

Previous: $14.1M+27.4%
Operating Income

$26.5M

Previous: $19.6M+35.3%
Gross Profit

$46.4M

Previous: $37.3M+24.4%
Cash & Equivalents

$3.92M

Previous: $6.8M-42.3%
Total Assets

$599M

Previous: $478M+25.4%
Stock-Based Comp

$1.09M

Previous: $862K+25.9%

Revenue & EPS history

Hawkins · Revenue · Quarterly

$241M

Q2 2023+31.6%vs Q2 2022
Beat estimate in 7 of 13 quarters(54%)
ActualEstimate

Revenue by segment

Hawkins · $241M total across 3 segments · Q2 2023

  • Industrial Solutions
    $114M+37.0%
  • Water Treatment
    $86.5M+39.2%
  • Food & Health Sciences
    $40.8M+7.3%

Forward guidance

Looking to the third quarter, one of our large suppliers recently had an unplanned shut down which has put additional cost pressures on us, as we secure product from other sources to allocate to our customers. In addition, we are starting to see softness in the Health and Nutrition segment, and we expect significant LIFO expenses to continue in the third quarter. These items will impact the third quarter negatively and we expect it to cause EPS to be relatively flat when compared to the prior year. We expect supply to return to normal by the fourth quarter.

Tailwinds

  • Expect top-line growth to continue in all segments.
  • Growing both organically and through acquisitions in future years.
  • Focus on the long-term.
  • Expect supply to return to normal by the fourth quarter.
  • Continued growth in Industrial and Water Treatment segments.

Headwinds

  • Unplanned supplier shutdown putting additional cost pressures.
  • Softness in the Health and Nutrition segment.
  • Expect significant LIFO expenses to continue in the third quarter.
  • These items will impact the third quarter negatively.
  • Expect it to cause EPS to be relatively flat when compared to the prior year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.7%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+5.6%

Avg return

30 days after

56%

36 / 64 earnings

Positive

+17.6%

Q1 2025

Best reaction

-10.2%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-3.2%-5.5%-2.1%
Q3 2026-9.1%-17.6%-3.0%
Q2 2026-5.0%-19.0%-18.0%
Q4 2025-0.7%+5.8%+13.5%
Q3 2025-8.4%-0.1%-9.6%
Q2 2025-8.8%-9.3%+14.8%
Q1 2025+17.6%+11.1%+22.8%
Q4 2024+9.4%+15.4%+13.1%
Q3 2024-10.2%-13.5%+1.7%
Q2 2024-5.1%+5.8%+9.0%
Q1 2024+7.1%+10.2%+35.9%
Q4 2023+12.3%+9.1%+15.4%
Q3 2023+9.8%+5.5%+8.1%
Q2 2023-2.3%-9.5%-9.6%
Q1 2023+3.9%+7.4%-1.7%
Q4 2022-7.5%-10.5%-7.2%
Q3 2022+9.4%+5.8%+23.9%
Q2 2022-7.1%-4.7%-11.6%
Q1 2022+14.9%+12.4%+22.3%
Q4 2021+4.0%+2.5%-0.3%
Q3 2021+9.7%+11.5%+25.1%
Q2 2021+3.8%-5.8%+2.6%
Q1 2021+2.1%+8.7%+7.5%
Q4 2020+9.3%+14.9%+11.0%
Q3 2020+0.7%+0.9%-6.7%
Q2 2020+4.0%+7.9%+0.6%
Q1 2020+0.5%+3.9%-1.3%
Q4 2019+4.5%+4.1%+15.5%
Q3 2019-10.1%-14.2%-7.4%
Q2 2019+10.5%+9.0%+22.9%
Q1 2019+9.8%+9.2%+10.7%
Q4 2018-6.9%-3.1%+4.9%
Q3 2018+3.2%+5.7%+5.7%
Q2 2018-2.4%-5.9%-1.0%
Q1 2018-4.4%-7.0%-15.6%
Q4 2017+1.4%+1.6%-1.1%
Q3 2017+0.5%+2.0%-4.6%
Q2 2017+0.7%+3.8%+21.6%
Q1 2017+2.4%+4.0%+4.3%
Q4 2016+10.5%+12.2%+11.3%
Q3 2016+0.3%
Q2 2016+1.1%
Q1 2016+0.3%
Q4 2015+2.2%
Q3 2015-2.4%
Q2 2015+2.5%
Q1 2015-2.0%
Q4 2014-1.8%
Q3 2014-2.0%
Q2 2014-5.5%
Q1 2014-6.6%
Q4 2013-1.8%
Q3 2013+0.3%
Q2 2013+0.8%
Q1 2013+1.9%
Q4 2010-3.1%
Q4 2012-3.1%
Q3 2011+3.2%
Q3 2012+3.2%
Q2 2012+2.5%
Q1 2012-3.3%
Q1 2011-3.3%
Q2 2011-3.3%
Q4 2011-3.3%

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