What's Next: Hawkins's Earnings Preview

Hawkins HWKN is set to give its latest quarterly earnings report on Wednesday, 2024-10-30. Here's what investors need to know before the announcement.

Analysts estimate that Hawkins will report an earnings per share (EPS) of $1.17.

The announcement from Hawkins is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Performance in Previous Earnings

Last quarter the company beat EPS by $0.37, which was followed by a 16.81% increase in the share price the next day.

Here's a look at Hawkins's past performance and the resulting price change:

Performance of Hawkins Shares

Shares of Hawkins were trading at $116.92 as of October 28. Over the last 52-week period, shares are up 101.9%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Hawkins

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Hawkins.

With 1 analyst ratings, Hawkins has a consensus rating of Neutral. The average one-year price target is $122.0, indicating a potential 4.34% upside.

Peer Ratings Comparison

The following analysis focuses on the analyst ratings and average 1-year price targets of PureCycle Technologies, Tronox Holdings and Kronos Worldwide, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• The prevailing sentiment among analysts is an Buy trajectory for PureCycle Technologies, with an average 1-year price target of $9.33, implying a potential 92.02% downside.
• Tronox Holdings is maintaining an Outperform status according to analysts, with an average 1-year price target of $18.0, indicating a potential 84.6% downside.
• Kronos Worldwide is maintaining an Underperform status according to analysts, with an average 1-year price target of $10.0, indicating a potential 91.45% downside.

Summary of Peers Analysis

The peer analysis summary outlines pivotal metrics for PureCycle Technologies, Tronox Holdings and Kronos Worldwide, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Hawkins ranks at the bottom for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.

Delving into Hawkins's Background

Hawkins Inc manufactures and sells a variety of chemicals and ingredients. The firm organizes itself into three segments based on the product type. The industrial segment, which generates the majority of revenue, sells private label bleach, caustic soda, sulfuric acid, hydrochloric acid, phosphoric acid, potassium hydroxide, and aqua ammonia. The water treatment segment sells chemicals and equipment used to treat potable water, municipal and industrial wastewater, industrial process water, and non-residential swimming pool water. The health and nutrition segment sells ingredients to food, beverage, personal care, and dietary supplement producers.

Key Indicators: Hawkins's Financial Health

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Hawkins displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 1.9%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Materials sector.

Net Margin: Hawkins's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 11.29% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Hawkins's ROE excels beyond industry benchmarks, reaching 6.98%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 4.24%, the company showcases effective utilization of assets.

Debt Management: With a below-average debt-to-equity ratio of 0.34, Hawkins adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Hawkins visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.