NASDAQ$HWKN

Hawkins Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Hawkins reported record Q4 sales and EPS, driven by strong performance in the Health and Nutrition segment.

Hawkins, Inc. reported record fourth-quarter sales and diluted earnings per share, driven by increased demand for health and immunity products. The company's Industrial and Water Treatment segments also contributed to the overall growth. The company is cautious about fiscal 2022 due to the uncertainty of consumer demand for health and immunity products.

  • Record sales in the fourth quarter of $163.0 million, a 23% year-over-year increase.
  • Record fourth quarter diluted earnings per share (EPS) of $0.43 was 91% higher than the same period of the prior year.
  • Health and Nutrition segment sales increased 63% due to increased consumer demand for health and immunity products.
  • Industrial segment sales increased 11% driven largely by a product mix shift to more sales of higher-priced manufactured, blended and repackaged products.

Headline financials

Total Revenue

$163M

Previous: $132M+23.1%
EPS (adj)

$0.43

Previous: $0.23+87.0%
Capital Expenditures

$7.59M

Previous: $5.12M+48.2%
Free Cash Flow

$9.59M

Previous: $8.79M+9.2%
Net Income

$9.1M

Previous: $4.8M+89.6%
Operating Income

$12.9M

Previous: $7.76M+66.0%
Gross Profit

$31.8M

Previous: $22.6M+40.2%
Cash & Equivalents

$3M

Previous: $4.28M-29.9%
Total Assets

$473M

Previous: $389M+21.4%
Stock-Based Comp

$1.04M

Previous: $443K+134.8%

Revenue & EPS history

Hawkins · Revenue · Quarterly

$163M

Q4 2021+23.1%vs Q4 2020
Beat estimate in 8 of 8 quarters(100%)
ActualEstimate

Revenue by segment

Hawkins · $163M total across 3 segments · Q4 2021

  • Industrial Solutions
    $76.3M+10.9%
  • Food & Health Sciences
    $45.2M+63.2%
  • Water Treatment
    $41.5M+15.6%

Forward guidance

Hawkins anticipates continued execution on its long-term growth strategy in fiscal 2022. The company expects the Industrial segment to remain steady and the Water Treatment segment to rebound. However, they are cautious about the Health and Nutrition segment due to potential contraction if consumer behaviors migrate towards pre-pandemic levels.

Tailwinds

  • Continue to execute on our long-term growth strategy.
  • Industrial segment remains steady.
  • Water Treatment segment will rebound from the impact of the pandemic.
  • Water Treatment segment will see growth in fiscal 2022.
  • Increased sales of specialty products.

Headwinds

  • Cautious about fiscal 2022 in Health and Nutrition.
  • Much of our success in this area was supported by consumer demand for health and immunity products, which was quite high in fiscal 2021, which we believe was a result of COVID-19.
  • If consumer behaviors migrate towards pre-pandemic levels, we will likely see some contraction in the Health and Nutrition segment.
  • Declines in sales into the ethanol industry.
  • Legacy business was down due to impacts from COVID-19, particularly in the first two quarters of the fiscal 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 Q4 2021

Historical avgQ4 2021

+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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