What Happened?
Shares of pool equipment and automation systems manufacturer Hayward Holdings (NYSE: HAYW) jumped 3.9% in the afternoon session after the company reported strong second-quarter financial results that surpassed analyst expectations for both revenue and earnings. The swimming pool equipment manufacturer announced a 5% year-over-year rise in net sales to $299.6 million. Profitability saw a significant boost, as net income increased by 19%. A key highlight was the company's record gross profit margin, which reached 52.7%, driven by successful pricing strategies and operational efficiencies. In a sign of confidence, Hayward also refined its full-year 2025 guidance, raising the lower end of its net sales forecast to a range between $1.070 billion and $1.100 billion.
After the initial pop the shares cooled down to $15.33, up 2.5% from previous close.
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What Is The Market Telling Us
Hayward’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock gained 8.2% on the news that the company reported a "beat and raise" quarter. Third-quarter results blew past analysts' revenue and EBITDA expectations. In addition, it lifted its full-year revenue and EBITDA guidance. Zooming out, we think this was a strong quarter.
Hayward is up 1% since the beginning of the year, and at $15.33 per share, it is trading close to its 52-week high of $16.60 from October 2024. Investors who bought $1,000 worth of Hayward’s shares at the IPO in March 2021 would now be looking at an investment worth $901.77.
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