Hawkins Q2 Sales Beat at $313.8M; Adjusted EBITDA Up 16%
HWKN sits 29% above its 52-week low of $116.045.
Summary
Hawkins posted fiscal Q2 sales of $313.8M, up 12% year over year and ahead of the $302.70M consensus. Adjusted EBITDA rose 16% to $59.09M, also beating the $52.89M estimate, with diluted EPS at $1.34 versus $1.08 a year ago. Water Treatment segment revenue grew 16% on higher volumes and better pricing, led by municipal end markets, and the two recent acquisitions added $3.7M in sales while extending reach in Florida and Dallas-Fort Worth. The company bought back $12M of stock in the quarter. Management guided second-half trends in line with the first half, though SG&A won't get the prior year's $6.2M benefit, and it sees a full-year tax rate of 25%-27%. The beat contrasts with last quarter's EBITDA miss and margin compression, and follows insider buying by the CFO and a VP near 52-week lows in late August.
At the time of this announcement, HWKN was trading at $150.00 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $2.8B. The 52-week trading range was $116.05 to $174.12. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.