Latham (SWIM) Reports Earnings Tomorrow: What To Expect

Residential swimming pool manufacturer Latham (NASDAQ:SWIM) will be reporting earnings this Tuesday after market close. Here’s what investors should know.

Latham missed analysts’ revenue expectations last quarter, reporting revenues of $161.9 million, up 7.6% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ EPS estimates.

This quarter, the market is expecting Latham’s revenue to grow 9.7% year on year, a reversal from the 4% decrease it recorded in the same quarter last year.

Analysts covering the company have generally 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 multiple times over the last two years.

Looking at Latham’s peers in the consumer discretionary - leisure products segment, some have already reported their Q4 results, giving us a hint as to what we can expect. MasterCraft delivered year-on-year revenue growth of 13.2%, beating analysts’ expectations by 4.1%, and Brunswick reported revenues up 15.5%, topping estimates by 10.3%. MasterCraft traded up 8.9% following the results while Brunswick was down 4.7%.

Investors in the consumer discretionary - leisure products segment have had steady hands going into earnings, with share prices flat over the last month. Latham is up 5.8% during the same time and is heading into earnings with an average analyst price target of $7.75 (compared to the current share price of $6.71).

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