Thursday was a good day for many stocks. However, Hawkins (HWKN -8.44%) wasn't one of those winners. The market generally shunned the diversified chemical company, sending its shares down by almost 8% in late-session trading. They were reacting to its third-quarter fiscal 2025 earnings report in which key metrics fell short of expectations. By contrast, the bellwether S&P 500 index was moving slightly higher, at nearly 0.4%.

New records posted, yet the figures fell short

Hawkins's sell-off occurred despite it posting record third-quarter numbers for several line items, including revenue and non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA). Specifically, the company booked more than $226 million in sales, which was 8% higher than in the same period of fiscal 2024. The improvement in GAAP (generally accepted accounting principles) net income wasn't as pronounced, with the bottom line expanding by less than 1% to slightly more than $15 million ($0.72 per share).

Publicly traded company results are always weighed against analyst estimates, and Hawkins fell short in this respect. Prognosticators following its fortunes were collectively forecasting that it would post sales of nearly $233 million and a per-share earnings figure of $0.76.

Water, water everywhere

Management said much of the sales gain came from its water treatment segment, which, in turn, benefited from the seven acquisitions -- in less than two years -- Hawkins made to bolster it. Organic growth for the division was strong, too, and ultimately its top-line improvement amounted to 22%. In dollar terms, the segment brought in just under $100 million.

Hawkins did not provide any guidance in its earnings release.

If I were a shareholder, I'd be encouraged by the company's performance rather than discouraged by those top- and bottom-line misses. I like the assertiveness in building up the key water treatment segment, particularly since it obviously has notable potential for improvement.