Hawkins, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Shareholders of Hawkins, Inc. (NASDAQ:HWKN) will be pleased this week, given that the stock price is up 13% to US$121 following its latest quarterly results. It looks like a credible result overall - although revenues of US$256m were what the analysts expected, Hawkins surprised by delivering a (statutory) profit of US$1.38 per share, an impressive 37% above what was forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Hawkins

After the latest results, the twin analysts covering Hawkins are now predicting revenues of US$988.7m in 2025. If met, this would reflect an okay 7.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 7.1% to US$4.14. In the lead-up to this report, the analysts had been modelling revenues of US$989.1m and earnings per share (EPS) of US$3.67 in 2025. Although the revenue estimates have not really changed, we can see there's been a substantial gain in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The consensus price target rose 13% to US$110, suggesting that higher earnings estimates flow through to the stock's valuation as well.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Hawkins' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 9.5% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.7% per year. Even after the forecast slowdown in growth, it seems obvious that Hawkins is also expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Hawkins' earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Hawkins going out as far as 2026, and you can see them free on our platform here.

You can also view our analysis of Hawkins' balance sheet, and whether we think Hawkins is carrying too much debt, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com