SWIM Earnings Prediction
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 -7.94% change in stock price 10 days leading up to the earnings, and a +7.10% change 10 days following the report. On the earnings day itself, the stock moves by +7.86%. This data can give you a slight idea of what to expect for the next quarter's release.
SWIM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
150.50M
-6.40%
-6.01%
Gross Margin
27.71%
7.32%
-4.78%
Operating Margin
8.88%
-21.00%
-28.90%
Net Margin
3.92%
2.35%
-52.71%
EPS
0.05
0.00%
-54.55%
No Data Available
SWIM Earnings Analysis
Latham Group, Inc. Common Stock Corporation (SWIM.O) Earnings Conference Call
Positive
Gross Margin Expansion: Lathams's gross margin expanded by 250 basis points to 32.4% in the third quarter, reflecting the continued success of lean manufacturing and value engineering initiatives.
Profitability Turnaround: Net income was $11.3 million compared to a loss of $2.5 million in the prior year, showcasing a significant turnaround in profitability.
Stable EBITDA Performance: Adjusted EBITDA was $76.6 million, approximately in line with $78.1 million in the prior year, indicating stable operational performance despite lower sales.
Cash Management Success: The company ended the third quarter with cash of approximately $60 million after having disbursed approximately $65 million for the Covers star Central acquisition, demonstrating strong cash management.
Fiber Glass Pool Sales Growth: Latham's fiber glass pool sales continued to show relative strength, contributing to the expectation that fiber glass pools will account for about 75% of total in-ground pool sales in 2024.
Negative
Net Sales Decline: Net sales for the third quarter were $150.5 million compared to $160.8 million prior year, down $10.3 million or 6.4%.
Sales Volume Decline: This decrease is primarily due to lower sales volumes, which is consistent with our expectations for a 15% decline in new pool starts this year.
Pool Sales Decline: Across our product categories, in-ground pool sales declined 9.8% in the third quarter, liners declined 8.1% and covers were approximately in line with prior year aided by the acquisition of Coversstar Central.
Increased SG&A Expenses: SG&A expenses increased to $28.3 million, up $4.9 million, primarily due to an increase in spending on sales and marketing initiatives as we continue to invest in future growth.
Net Income Comparison: Net income was $5.9 million or $0.05 per diluted share, compared to $6.2 million or $0.05 per diluted share for the prior year's third quarter.
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SWIM Earning Call Sentiment
Latham Group, Inc. (SWIM) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
SWIM.O
-0.74%Positive
The earnings call reflects a mixed outlook. Despite a 6.4% decline in net sales, the company managed to expand gross margins and maintain net income. The acquisition of Coverstar Central and increased EBITDA guidance are positive, but the lack of a share repurchase program and increased SG&A expenses raise concerns. The Q&A indicates optimism for future profitability and market recovery, but management's vague responses on pricing and margins create uncertainty. Overall, these factors suggest a neutral sentiment, with no strong catalysts for significant stock price movement in the short term.
