What to expect from Hayward's (HAYW) Q3 earnings

What happened

Hayward Holdings, which makes pool equipment and automation systems, will report quarterly results Wednesday morning. Last quarter it reported revenue of $318.4 million, up 6.3% from a year earlier. For this quarter, the market expects revenue to grow 3.1% year on year.

Confirmed

Global impact / market context

Hayward sells pool equipment, so its sales reflect whether homeowners and pool builders are spending on upgrades and automation. Expected growth of 3.1% is slower than last year's 7.4% gain, which means investors will watch whether demand is cooling and whether profit holds up.

Analyst inference

Other building products companies have already reported. Simpson grew revenue 2.3% and beat expectations, while Apogee grew 9.2% and beat estimates, with its shares up 15.3% after results. Those outcomes suggest demand in this segment has not collapsed, though company-specific results still vary.

Analyst inference

What to watch

1. Hayward's reported revenue and whether it meets the 3.1% year-on-year growth the market expects, compared with 7.4% growth in the same quarter last year. Confirmed
2. Watch whether Hayward repeats its pattern of beating Wall Street estimates, as it did last quarter when full-year earnings per share guidance and EBITDA, which means earnings before interest, taxes, depreciation and amortization, beat expectations. Proposed
3. Watch whether pool equipment demand is slowing, since expected growth of 3.1% is below last year's 7.4%, which could affect sales of higher-priced automation systems and future capital spending. Analyst inference

Evidence

• stockstory.org