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Hawkins, Inc. HWKN, a leading specialty chemical and ingredients company, successfully closed the buyout of Wofford Water Service, Inc — a distributor of water treatment chemicals and equipment primarily operating in Mississippi.

This acquisition bolsters Hawkins' presence in the southern U.S. by expanding its customer base in Mississippi, where its Water Treatment business has been limited. This strategic move aligns with Hawkins' efforts to expand the water treatment division and accelerate its expansion in the south.

Wofford Water Service has built a strong business with deep community ties, which Hawkins plans to maintain. HWKN welcomes the Wofford Water Service team to its family and looks forward to their shared growth.

The stock has surged 96.1% in the past year compared with the industry’s 13.6% decline.

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Hawkins reported earnings of 66 cents per share for the fourth quarter of fiscal 2024, increasing from 55 cents in the year-ago quarter but falling short of the Zacks Consensus Estimate of 68 cents. The company generated revenues of $223 million in the said quarter, down 2% year over year but surpassing the Zacks Consensus Estimate of $217.5 million. The decline in the Industrial segment offset higher sales in the Water Treatment unit.

Hawkins anticipates consistent top- and bottom-line growth in the fiscal 2025, with revenues approaching $1 billion. The company expects the Water Treatment segment to become its largest reporting unit. While cautiously optimistic about the Industrial segment, Hawkins acknowledges that economic and competitive pressures will likely continue to affect many of its customers and overall demand. For the Health and Nutrition unit, the company expects the improved performance seen in the latter half of the fiscal 2024 to persist into the fiscal 2025, with results surpassing those of the fiscal 2024.

Zacks Ranks & Key Picks

Hawkins currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation CRS, L.B. Foster Company FSTR and Ecolab Inc. ECL. Carpenter Technology and L.B. Foster sport a Zacks Rank #1 (Strong Buy), and Ecolab carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CRS’s current-year earnings is pegged at $4.35, indicating a year-over-year rise of 282%. CRS’ earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, the average earnings surprise being 15.1%. The company’s shares have soared 89.8% in the past year.

The Zacks Consensus Estimate for FSTR’s current-year earnings is pegged at $1.72, indicating a year-over-year rise of 1,223%. FSTR’s earnings estimates have gone up 61% in the last 60 days. The stock has rallied 47.9% in the past year.

The Zacks Consensus Estimate for Ecolab's current-year earnings is pegged at $6.59, indicating a rise of 26.5% from the year-ago levels. ECL beat the consensus estimate in each of the last four quarters, the average earnings surprise being 1.3%. The stock has rallied nearly 29.7% in the past year.

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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

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