Pool equipment and automation systems manufacturer Hayward Holdings (NYSE:HAYW) will be reporting earnings this Wednesday morning. Here’s what to expect.
Hayward beat analysts’ revenue expectations by 7.1% last quarter, reporting revenues of $228.8 million, up 7.7% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.
Is Hayward a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Hayward’s revenue to grow 1.9% year on year to $289.8 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.23 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 4 downward revisions over the last 30 days (we track 9 analysts). Hayward has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.2% on average.
Looking at Hayward’s peers in the building products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Simpson delivered year-on-year revenue growth of 5.7%, beating analysts’ expectations by 5.3%, and Lennox reported revenues up 3.4%, topping estimates by 2.5%. Lennox traded up 7.2% following the results.
Read our full analysis of Simpson’s results here and Lennox’s results here.
There has been positive sentiment among investors in the building products segment, with share prices up 6.5% on average over the last month. Hayward is up 8.5% during the same time and is heading into earnings with an average analyst price target of $15.93 (compared to the current share price of $14.97).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.