What To Expect From Hayward’s (HAYW) Q3 Earnings

Pool equipment and automation systems manufacturer Hayward Holdings (NYSE:HAYW) will be announcing earnings results tomorrow before the bell. Here’s what to expect.

Hayward met analysts’ revenue expectations last quarter, reporting revenues of $284.4 million, flat year on year. It was a decent quarter for the company, with full-year EBITDA guidance exceeding Wall Street's 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 1.2% year on year to $222.9 million, a reversal from the 10.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 3 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 2.4% on average.

Looking at Hayward’s peers in the building products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Simpson delivered year-on-year revenue growth of 1.2%, meeting analysts’ expectations, and Lennox reported revenues up 9.6%, topping estimates by 5.9%. Simpson traded down 5.5% following the results while Lennox was up 4.3%.

Read our full analysis of Simpson’s results here and Lennox’s results here.

Investors in the building products segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Hayward is down 3.3% during the same time and is heading into earnings with an average analyst price target of $16.19 (compared to the current share price of $14.83).

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