Hawkins' Earnings Lag, Revenues Surpass Estimates in Q3

Core Insights - Hawkins, Inc. reported earnings of 72 cents per share for Q3 fiscal 2025, a slight increase from 71 cents in the same quarter last year, but below the Zacks Consensus Estimate of 78 cents [1] - The company achieved revenues of $226.2 million, representing an 8% year-over-year increase, and surpassed the Zacks Consensus Estimate of $219.2 million [2] Segment Performance - The Water Treatment segment saw a significant sales increase of 22% year over year, reaching $99.8 million, driven by acquisitions and higher sales volumes [3] - The Industrial segment experienced a 1% decline in sales to $92 million, impacted by lower selling prices and changes in product mix [4] - Sales in the Health and Nutrition segment rose by 3% year over year to $34.5 million, attributed to increased sales of manufactured products [4] Financial Overview - At the end of the quarter, Hawkins had cash and cash equivalents of approximately $8.3 million, a 10% increase sequentially, while long-term debt rose to about $103.9 million, an 11% increase from the previous quarter [5] - The company generated an operating cash flow of around $80.3 million for the nine months ending December 29, 2024 [5] Future Outlook - Hawkins anticipates continued growth in the Water Treatment and Health and Nutrition segments, while expecting the Industrial segment to perform similarly to the first nine months of fiscal 2025 [6] Stock Performance - Hawkins' shares have increased by 89.9% over the past year, contrasting with a 14.5% decline in the Zacks Chemicals Specialty industry [7]