Hawkins’s Growth Potential Shines Despite Water Treatment Setbacks
Hamed Khorsand maintains a Buy rating for Hawkins, citing growth potential despite recent setbacks in the water treatment segment. The company's fiscal second-quarter results were below expectations due to weaker sales, influenced by a milder summer affecting contract renewals. However, Hawkins's industrial segment grew by approximately 10.8%, as customers preferred its inventory over imports. Khorsand believes that while quarterly performances may vary, they do not detract from Hawkins's overall growth narrative.
Hamed Khorsand has given his Buy rating due to a combination of factors that highlight Hawkins’s potential for growth despite recent challenges. The company reported fiscal second-quarter results that fell short of expectations, primarily due to weaker sales in the water treatment segment, which has historically been a strong growth driver for Hawkins. However, the milder summer in certain regions affected the anticipated boost from annual contract renewals, impacting overall sales figures.
Despite this setback, Khorsand notes the impressive performance of Hawkins’s industrial segment, which experienced a growth of approximately 10.8 percent. This growth is attributed to industrial customers finding it easier to access Hawkins’s inventory compared to dealing with imports and tariffs. Khorsand believes that while Hawkins may experience variable quarterly performances, these fluctuations do not undermine the company’s overarching growth narrative, justifying the Buy rating.
