Shares of Hawkins Inc. (HWKN) surged 6.96% in after-hours trading on Wednesday following the release of its fourth-quarter earnings report that exceeded analyst expectations and provided an optimistic outlook for the coming fiscal year.

The chemical manufacturing company reported quarterly earnings of $0.78 per share, surpassing the analyst consensus estimate of $0.73 and marking an 18.18% increase from $0.66 per share in the same period last year. Hawkins also posted strong sales figures, with quarterly revenue rising 10% to $245.32 million, beating the analyst estimate of $230.69 million.

Investors were particularly encouraged by Hawkins' bullish forecast for fiscal year 2026. The company expects all of its business segments to grow, with revenue projected to surpass $1 billion. This optimistic outlook suggests continued momentum and potential for further share price appreciation.

In addition to the strong financial results and positive guidance, Hawkins maintained its commitment to shareholder returns by declaring a quarterly cash dividend of $0.18 per share. This consistent payout, which has been a tradition since 1985, further bolsters investor confidence in the company's financial stability and long-term prospects.

While Hawkins anticipates continued earnings per share growth, the company noted that the pace might slow compared to recent years due to higher interest expenses from new debt financing and increased amortization expenses from recent acquisitions. Despite these factors, the overall positive sentiment surrounding the company's performance and outlook appears to be driving the significant after-hours stock movement.