The chart below shows how SWIM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SWIM sees a -4.56% change in stock price 10 days leading up to the earnings, and a +10.56% change 10 days following the report. On the earnings day itself, the stock moves by +7.41%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Market Resilience Amid Decline: Latham Group outperformed the market despite a 15% decline in US pool starts, indicating strong market resilience.
Fiberglass Pool Market Growth: Fiberglass pools represented 24% of US pool starts in 2024, up from 23% in 2023, showing increased market penetration and consumer preference.
Fiberglass Pool Sales Increase: 75% of Latham's in-ground pool sales were fiberglass pools in 2024, compared to 73% in 2023, highlighting a growing trend towards fiberglass over concrete pools.
Strong Financial Performance: Adjusted EBITDA reached over $80 million with a margin of 15.8%, reflecting strong financial performance and effective cost management.
Sales Growth Outlook: The company is positioned for considerable sales growth and accelerated profitability in 2025 and beyond, indicating a positive outlook for future performance.
Negative
Earnings Miss Report: Latham Group, Inc. missed earnings expectations with a reported EPS of $-0.19, while expectations were $-0.09.
Market Decline Impact: The company faced a significant decline in the market, with an estimated 15% drop in US pool starts in 2024.
Sales Performance Analysis: Despite outperforming the market, the overall sales performance was impacted by lower sales figures compared to previous years.
Adjusted EBITDA Margin Analysis: The adjusted EBITDA margin of 15.8% was only slightly ahead of the prior year, indicating limited growth in profitability despite cost reductions.
Market Challenges Ahead: The company is navigating challenging industry conditions, suggesting ongoing difficulties in the market that may affect future performance.
Latham Group, Inc. (NASDAQ:SWIM) Q4 2024 Earnings Call Transcript
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