NASDAQ$HWKN

Hawkins Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Hawkins reported record third quarter performance with sales growth led by the Water Treatment group.

Hawkins, Inc. reported a strong third quarter with record sales of $219.2 million, a 17% year-over-year increase. Gross profit increased by 7% to $36.3 million, contributing to a 7% increase in operating income to $15.3 million. Diluted earnings per share increased by 6% to $0.51.

  • Record third quarter performance in sales, gross profit, operating income, adjusted EBITDA, and operating cash flow.
  • Sales increased by 17% year-over-year to $219.2 million, driven by a 38% growth in the Water Treatment group.
  • Gross profit increased by 7% year-over-year to $36.3 million, contributing to a 7% increase in operating income to $15.3 million.
  • Diluted earnings per share increased by 6% year-over-year to $0.51.

Headline financials

Total Revenue

$219M

Previous: $187M+17.2%
EPS (adj)

$0.51

Previous: $0.48+6.3%
Capital Expenditures

-$32.3M

Previous: -$15.7M-105.8%
Free Cash Flow

-$21.6M

Previous: -$5.5M-292.5%
Net Income

$10.7M

Previous: $10.2M+5.2%
Operating Income

$15.3M

Previous: $14.3M+7.1%
Gross Profit

$36.3M

Previous: $33.9M+6.9%
Cash & Equivalents

$6.15M

Previous: $23.4M-73.8%
Total Assets

$594M

Previous: $521M+14.0%
Stock-Based Comp

$1.08M

Previous: $1.05M+3.6%

Revenue & EPS history

Hawkins · Revenue · Quarterly

$219M

Q3 2023+17.2%vs Q3 2022
Beat estimate in 7 of 13 quarters(54%)
ActualEstimate

Revenue by segment

Hawkins · $219M total across 3 segments · Q3 2023

  • Industrial Solutions
    $114M+13.8%
  • Water Treatment
    $68.5M+37.7%
  • Food & Health Sciences
    $36.2M-1.5%

Forward guidance

The company expects continued softness in the Health and Nutrition segment through the fourth quarter and anticipates continued improvement in operating cash flow, which will support debt reduction.

Tailwinds

  • Continued strong year-over-year revenue growth.
  • Continued gross profit growth.
  • Expected continued improvement in operating cash flow.
  • Anticipated debt reduction.
  • Effective navigation of supply challenges.

Headwinds

  • Expected continued softness in the Health and Nutrition segment.
  • Negative impact on gross profit due to rising material costs.
  • Recorded a $3.7 million charge for LIFO expense in the quarter.
  • Continued increase in working capital.
  • Raw material price increases.

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 Q3 2023

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro