ROSEVILLE, Minn. - Hawkins , Inc. (NASDAQ:HWKN), a prominent specialty chemical and ingredients company, reported its fourth quarter financial results for the fiscal year ended March 31, 2024.
The company's revenue surpassed analyst expectations, coming in at $223 million against the consensus estimate of $217.49 million, marking a 2% decline from the same quarter last year. However, the company experienced a slight shortfall in earnings per share (EPS), posting $0.66 versus the anticipated $0.68.
The company's Water Treatment segment saw a significant 21% increase in sales compared to the previous year, contributing to the overall revenue beat. Despite the overall revenue decrease, Hawkins achieved a 27% increase in gross profit to $45.5 million and a 9% rise in operating income for the quarter. The company also reported record fourth-quarter diluted EPS, which was 20% higher than the prior year's period.
Investors responded positively to the news, with Hawkins' stock price surging 5.8% following the earnings release.
Patrick H. Hawkins, CEO and President, commented on the company's performance, "We had an excellent fiscal 2024. This included record operating cash flow, and, for the sixth year in a row, record operating income, net income, diluted EPS, and adjusted EBITDA." Mr. Hawkins attributed the strong results to the company's strategic growth through acquisitions, particularly in the Water Treatment segment, which saw a 69% increase in operating income to $53 million on a 19% revenue growth.
Looking ahead, Hawkins anticipates continued growth in the fiscal year 2025, with the top line approaching $1 billion in revenue. The company remains cautiously optimistic about its Industrial segment and expects improved performance in the Health and Nutrition segment to carry forward.
The company's full-year figures also reflected robust growth, with sales reaching $919.2 million, albeit a 2% decrease from the prior fiscal year. Gross profit for the year saw a notable 17% increase to $193.6 million, and Hawkins reported a record diluted EPS of $3.59, which was $0.73 or 26% higher than fiscal 2023.
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