Hawkins (HWKN) Boosts Water Treatment Reach With EcoTech Buyout
Hawkins, Inc. HWKN, a prominent specialty chemical and ingredients company, has taken a significant step toward expanding its water treatment business by closing the acquisition of EcoTech Enterprises, Inc. With this strategic move, Hawkins has now added its 40th Water Treatment location and strengthened its market position in Arkansas and the surrounding areas.
EcoTech, known for manufacturing, blending, packaging, and distributing water treatment chemicals across Arkansas and the neighboring states, has built a solid business with strong ties to the local community. By integrating EcoTech into its operations, Hawkins aims to accelerate its growth in the region while maintaining the existing connections built by EcoTech.
This strategic acquisition positions Hawkins to offer its expertise and products to a broader customer base while leveraging EcoTech's established market presence. With a strengthened water treatment footprint, Hawkins is well-positioned to meet the increasing demand for water treatment solutions and further solidify its status as a leading player in the industry.
Hawkins’ shares have gained 38.1% in the past year compared with the 14.2% growth of its industry. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 4.1% downward in the past 60 days. The consensus estimate for current-year earnings is currently pegged at $2.57, suggesting a year-over-year decline of around 10.1%.
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The company’s revenues for fourth-quarter fiscal 2023 (ended Apr 2, 2023) rose roughly 2% year over year to $228.1 million. The top line was driven by higher selling prices. HWKN saw sales gains across Industrial and Water Treatment segments.
Sales from the Water Treatment segment climbed 19% year over year to $71.4 million. Sales were driven by higher selling prices on many of HWKN’s products and increased sales of its products.
The company sees sustained growth in top and bottom lines in Water Treatment on the back of investments and acquisitions. While it is cautiously optimistic about the Industrial segment, economic pressures are expected to continue to impact many of its customers and demand. The company also expects the decline it saw in Health and Nutrition in the latter half of fiscal 2023 to continue through much of fiscal 2024.
Hawkins, Inc. Price and Consensus
Hawkins, Inc. price-consensus-chart | Hawkins, Inc. Quote
Zacks Rank & Key Picks
Hawkins currently has a Zacks Rank #4 (Sell).
Better-ranked stocks in the basic materials space include PPG Industries, Inc. PPG, Carpenter Technology Corporation CRS and Silvercorp Metals Inc. SVM.
PPG Industries currently carries a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for PPG's current-year earnings has been revised 0.7% upward over the past 60 days.
PPG Industries’ earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 6.8%, on average. PPG shares have gained around 26% in a year.
The Zacks Consensus Estimate for current-year earnings for Carpenter Technology is currently pegged at $1.04, implying year-over-year growth of 198.1%. Carpenter Technology currently carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology has a trailing four-quarter earnings surprise of roughly 30.9%, on average. CRS has gained around 92% in a year.
Silvercorp Metals currently carries a Zacks Rank #1. The Zacks Consensus Estimate for SVM’s current-year earnings has been revised 3.8% upward in the past 60 days.
The consensus estimate for current fiscal-year earnings for Silvercorp is currently pegged at 27 cents, suggesting year-over-year growth of 28.6%. SVM shares have risen roughly 32% in the past year.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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