The 10-second takeaway
For the quarter ended Dec. 30 (Q3), Hawkins beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share shrank significantly.
Margins contracted across the board.
Hawkins reported revenue of $85.5 million. The one analyst polled by S&P Capital IQ hoped for revenue of $83.0 million on the same basis. GAAP reported sales were 1.6% higher than the prior-year quarter's $84.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.13. The one earnings estimate compiled by S&P Capital IQ anticipated $0.47 per share. GAAP EPS of $0.13 for Q3 were 76% lower than the prior-year quarter's $0.54 per share. (The prior-year quarter included $0.03 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 17.9%, 70 basis points worse than the prior-year quarter. Operating margin was 9.0%, 110 basis points worse than the prior-year quarter. Net margin was 1.6%, 500 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $85.8 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $346.0 million. The average EPS estimate is $2.08.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 232 members out of 240 rating the stock outperform, and eight members rating it underperform. Among 72 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 71 give Hawkins a green thumbs-up, and one give it a red thumbs-down.
Looking for alternatives to Hawkins? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Hawkins to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.