The numbers: Fiscal second-quarter profit declined 2% to $6.7 million, or 65 cents a share, as revenue dropped 17% to $65 million. The company's gross margin expanded from 24% to 29%, and its operating margin contracted from 14% to 17%. Hawkins has an ideal financial position, with $37 million of cash and no debt.
The stock: Hawkins climbed 37% during the past year, more than the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 9, a discount to chemical peers. The shares offer a 2.6% dividend yield.