Latham Group (NASDAQ:SWIM) Releases Quarterly Earnings Results, Misses Expectations By $0.02 EPS

Key Points

• Latham Group missed expectations: EPS was ($0.07) vs. the consensus ($0.05), a $0.02 miss, and revenue came in at $117.32 million vs. $118.39 million expected.
• The stock traded at $5.86 on the day with 607,218 shares changing hands, and the company carries a market cap of $685.4 million and a high valuation (P/E ~65.1).
• Analyst sentiment is mixed with recent target changes (Stifel raised to $9.50; BofA cut to $6.00) and an average consensus rating of "Reduce" and a consensus target price of $6.75.

Latham Group (NASDAQ:SWIM - Get Free Report) announced its quarterly earnings data on Tuesday. The company reported ($0.07) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.02), FiscalAI reports. Latham Group had a return on equity of 2.79% and a net margin of 2.04%.The firm had revenue of $117.32 million for the quarter, compared to analysts' expectations of $118.39 million.

Latham Group Stock Performance

Shares of Latham Group stock traded up $0.06 during trading on Tuesday, reaching $5.86. The company's stock had a trading volume of 607,218 shares, compared to its average volume of 874,470. The company has a debt-to-equity ratio of 0.68, a quick ratio of 1.82 and a current ratio of 2.77. The business's fifty day moving average price is $6.00 and its 200-day moving average price is $6.50. The firm has a market cap of $685.39 million, a price-to-earnings ratio of 65.11, a price-to-earnings-growth ratio of 2.54 and a beta of 1.72. Latham Group has a one year low of $5.04 and a one year high of $8.97.

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. Stifel Nicolaus raised their target price on Latham Group from $8.75 to $9.50 and gave the company a "buy" rating in a report on Wednesday, March 4th. Bank of America cut their target price on Latham Group from $7.00 to $6.00 and set an "underperform" rating on the stock in a report on Monday, April 20th. Zacks Research lowered Latham Group from a "strong-buy" rating to a "hold" rating in a report on Friday, April 3rd. Barclays cut their target price on Latham Group from $8.00 to $7.00 and set an "equal weight" rating on the stock in a report on Wednesday, April 8th. Finally, William Blair restated an "outperform" rating on shares of Latham Group in a report on Wednesday, March 4th. Two research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Reduce" and a consensus target price of $6.75.

Hedge Funds Weigh In On Latham Group

A number of institutional investors have recently made changes to their positions in SWIM. BNP Paribas Financial Markets increased its stake in shares of Latham Group by 83.9% in the second quarter. BNP Paribas Financial Markets now owns 4,211 shares of the company's stock worth $27,000 after purchasing an additional 1,921 shares during the period. Raymond James Financial Inc. acquired a new stake in Latham Group during the second quarter worth about $29,000. State of Wyoming acquired a new stake in Latham Group during the fourth quarter worth about $55,000. Kemnay Advisory Services Inc. acquired a new stake in Latham Group during the fourth quarter worth about $60,000. Finally, O Shaughnessy Asset Management LLC acquired a new stake in Latham Group during the fourth quarter worth about $64,000. 83.95% of the stock is currently owned by institutional investors.

Latham Group Company Profile

Latham Group, Inc designs, manufactures and supplies a broad range of aquatic products and services for residential and commercial applications. Offerings include fiberglass and vinyl-liner pool shells, commercial water park structures, water slides, surf simulators, pumps, filters, heaters and sanitation systems. The company also provides parts, equipment and technical support for pool installation, maintenance and repair.

Operating across three core segments—commercial, residential and aftermarket—Latham delivers turnkey aquatic facilities and attractions for municipal, hospitality and resort clients, offers packaged pool kits and equipment packages to builders and dealers, and supplies replacement parts, service contracts and technical assistance to support ongoing pool operations.

Headquartered in the United States, Latham Group maintains manufacturing and distribution centers throughout North America and Europe.

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