Latham (SWIM) Reports Earnings Tomorrow: What To Expect

Residential swimming pool manufacturer Latham (NASDAQ:SWIM) will be reporting results tomorrow after market close. Here's what to look for.

Latham beat analysts' revenue expectations by 4.5% last quarter, reporting revenues of $90.87 million, down 15.8% year on year. It was a decent quarter for the company, with an impressive beat of analysts' earnings estimates but full-year revenue guidance missing 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 decline 26.1% year on year to $101.7 million, improving from the 28.1% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.09 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 three times over the last two years.

Looking at Latham's peers in the leisure products segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Harley-Davidson's revenues decreased 3.3% year on year, beating analysts' expectations by 28.4%, and Johnson Outdoors reported a revenue decline of 13%, topping estimates by 10.8%. Harley-Davidson traded down 11.9% following the results.

Read our full analysis of Harley-Davidson's results here and Johnson Outdoors's results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 thanks to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the leisure products stocks have fared somewhat better, they have not been spared, with share prices down 3.4% on average over the last month. Latham is down 21.7% during the same time and is heading into earnings with an average analyst price target of $3.6 (compared to the current share price of $2.81).

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