NASDAQ$HWKN

Hawkins Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Hawkins reported record fourth quarter sales and EPS, driven by increased selling prices and strong performance in the Water Treatment segment.

Hawkins, Inc. reported record fourth quarter sales of $228.1 million and diluted EPS of $0.55. Adjusted EBITDA increased by 21% compared to the same period of the prior year. The company's strong operating cash flow allowed it to pay down $19 million in debt during the quarter.

  • Record fourth quarter sales of $228.1 million.
  • Record fourth quarter diluted earnings per share (EPS) of $0.55, 10% higher than the same period of the prior year.
  • Adjusted EBITDA of $27.0 million, a 21% increase over the same period of the prior year.
  • Record fourth quarter operating cash flow allowed the company to pay down $19 million in debt.

Headline financials

Total Revenue

$228M

Previous: $223M+2.3%
EPS (adj)

$0.55

Previous: $0.50+10.0%
Capital Expenditures

$16M

Previous: $12.8M+25.0%
Free Cash Flow

$16.8M

Previous: -$8.68M+294.0%
Net Income

$11.6M

Previous: $10.6M+9.4%
Operating Income

$18.5M

Previous: $15.2M+21.5%
Gross Profit

$35.7M

Previous: $36.3M-1.6%
Cash & Equivalents

$7.57M

Previous: $3.5M+116.4%
Total Assets

$591M

Previous: $567M+4.1%
Stock-Based Comp

$1.06M

Previous: $1.11M-4.5%

Revenue & EPS history

Hawkins · Revenue · Quarterly

$228M

Q4 2023+2.3%vs Q4 2022
Beat estimate in 7 of 13 quarters(54%)
ActualEstimate

Revenue by segment

Hawkins · $228M total across 3 segments · Q4 2023

  • Industrial Solutions
    $118M+0.3%
  • Water Treatment
    $71.4M+19.0%
  • Food & Health Sciences
    $39.1M-14.3%

Forward guidance

Hawkins expects continued top and bottom-line growth in its Water Treatment segment. The company is cautiously optimistic about its Industrial segment, but believes economic pressures will continue to weigh on many of its customers and impact demand. In Health and Nutrition, the company expects the decline seen in the latter half of fiscal 2023 to continue through much of fiscal 2024.

Tailwinds

  • Continued top and bottom-line growth expected in Water Treatment segment.
  • Expanding geographic footprint positions the company well for continued growth in Water Treatment.
  • Company believes it will continue to generate strong operating cash flow.
  • Company will continue to pay down debt during fiscal year 2024.
  • Diversity of businesses and overall strength of the company.

Headwinds

  • Economic pressures expected to weigh on Industrial segment customers and impact demand.
  • Decline in Health and Nutrition segment expected to continue through much of fiscal 2024.
  • Consumer demand for health and immunity products declined from the COVID-bump high.
  • Customers are working through excess inventory in the Health and Nutrition segment.
  • Continued raw material cost 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 Q4 2023

Historical avgQ4 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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