Residential swimming pool manufacturer Latham (NASDAQ:SWIM) will be reporting earnings this Tuesday after the bell. Here’s what investors should know.
Latham met analysts’ revenue expectations last quarter, reporting revenues of $111.4 million, flat year on year. It was a strong quarter for the company, with a solid beat of analysts’ adjusted operating income estimates and full-year revenue guidance exceeding analysts’ expectations.
Is Latham a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Latham’s revenue to grow 9.4% year on year to $175.2 million, a reversal from the 9.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Latham has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Latham’s peers in the leisure products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Polaris’s revenues decreased 5.6% year on year, beating analysts’ expectations by 9.2%, and Brunswick reported flat revenue, topping estimates by 16.4%. Polaris traded up 17% following the results while Brunswick was down 6%.
Read our full analysis of Polaris’s results here and Brunswick’s results here.
Investors in the leisure products segment have had steady hands going into earnings, with share prices flat over the last month. Latham’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $7.26 (compared to the current share price of $6.60).
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