Hawkins Q1 revenue slightly beats estimates
Hawkins Q1 revenue slightly beats estimates
Overview
US water treatment and specialty ingredients firm's fiscal Q1 revenue grew 8%, slightly beating analyst expectations
Adjusted EBITDA for fiscal Q1 rose 1% but missed analyst estimates
Company acquired Aqua-Chem, Inc. to expand Water Treatment segment
Outlook
Hawkins expects to return to historical organic revenue growth rates in fiscal 2027
Company expects full-year effective tax rate of 25% to 27%
Hawkins plans to continue paying down debt and investing in higher-margin businesses in fiscal 2027
Result Drivers
SEGMENT GROWTH - All segments contributed to revenue growth, with Water Treatment up 6%, Food & Health Sciences up 9%, and Industrial Solutions up 10%
ACQUISITIONS - Water Treatment segment growth was supported by $6.9 mln in added sales from acquired businesses, including Aqua-Chem
MARGIN PRESSURE - Gross profit growth was limited by higher LIFO reserve charges and increased freight costs not fully recovered through customer charges
Company press release: ID:nGNXbBQqDQ
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Sales | Slight Beat* | $315.70 mln | $313.42 mln (4 Analysts) |
Q1 EPS |
| $1.35 |
|
Q1 Net Income |
| $28.25 mln |
|
Q1 Adjusted EBITDA | Miss | $56.88 mln | $57.83 mln (4 Analysts) |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the diversified chemicals peer group is "buy"
Wall Street's median 12-month price target for Hawkins Inc is $184.00, about 28.7% above its July 28 closing price of $143.02
The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 34 three months ago
Reuters Recommended Reads
July 28 - Veralto Q2 results beat estimates on industrial water treatment demand; raises outlook
July 28 - Xylem raises annual profit forecast as AI growth lifts demand for water-treatment equipment
July 28 - Ashland Q3 profit beats on higher volume, pricing; cuts FY EPS forecast
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)