Residential swimming pool manufacturer Latham (NASDAQ: SWIM) will be announcing earnings results this Tuesday afternoon. Here’s what investors should know.
Latham missed analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $172.6 million, up 7.8% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but EPS in line with analysts’ estimates.
Is Latham a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Latham’s revenue to grow 9.5% year on year to $164.8 million, a reversal from the 6.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 per share.
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 three times over the last two years.
Looking at Latham’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Malibu Boats delivered year-on-year revenue growth of 13.5%, beating analysts’ expectations by 4.3%, and Brunswick reported revenues up 6.8%, topping estimates by 8.9%. Malibu Boats traded down 14.6% following the results while Brunswick was up 10.6%.
Read our full analysis of Malibu Boats’s results here and Brunswick’s results here.
Debates over possible tariffs and corporate tax adjustments have raised questions about economic stability in 2025. While some of the consumer discretionary stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.7% on average over the last month. Latham is down 2.3% during the same time and is heading into earnings with an average analyst price target of $7.79 (compared to the current share price of $7.25).
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