NYSE$HAYW

Hayward Holdings Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Hayward's first quarter results reflected strong execution amid channel inventory rightsizing and normalizing seasonal buying patterns.

Hayward Holdings reported a 49% decrease in net sales to $210.1 million for the first quarter of fiscal year 2023. Net income decreased by 89% to $8.4 million, and diluted EPS decreased by 87% to $0.04. The company is reaffirming its full year 2023 guidance.

  • Net sales decreased by 49% to $210.1 million.
  • Net income decreased by 89% to $8.4 million.
  • Diluted EPS decreased by 87% to $0.04.
  • Adjusted EBITDA decreased by 64% to $44.9 million.

Headline financials

Total Revenue

$210M

Previous: $410M-48.8%
EPS (adj)

$0.07

Previous: $0.35-80.0%
Adjusted EBITDA

$44.9M

Previous: $126M-64.4%
Adjusted EBITDA Margin

21.4%

Previous: 30.8%-30.5%
Operating Margin

13.3%

No prior period
Gross Profit Margin

46.6%

No prior period
Capital Expenditures

-$6.24M

Previous: -$7.33M+14.9%
Free Cash Flow

$2.17M

Previous: $66.7M-96.7%
Net Income

$8.41M

Previous: $74M-88.6%
Operating Income

$27.8M

Previous: $106M-73.8%
Gross Profit

$97.9M

Previous: $190M-48.6%
Cash & Equivalents

$41M

Previous: $118M-65.3%
Total Assets

$2.93B

Previous: $3B-2.5%
Stock-Based Comp

$2.05M

Previous: $1.64M+24.7%

Revenue & EPS history

Hayward · Revenue · Quarterly

$210M

Q1 2023-48.8%vs Q1 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Hayward is reaffirming its full year 2023 guidance reflecting current global economic conditions and reductions in channel inventory levels.

Tailwinds

  • Hayward remains positive about the health of the pool industry.
  • The industry continues to benefit from secular demand tailwinds, including outdoor living.
  • The industry continues to benefit from sunbelt migration.
  • The industry continues to benefit from smart home technology adoption.
  • The industry continues to benefit from environmentally sustainable products.

Headwinds

  • Net sales are expected to decrease 18% to 22% compared to the prior year.
  • Adjusted EBITDA is expected to be $265 million to $285 million.
  • Global economic conditions
  • Reductions in channel inventory levels.
  • Near-term demand across our industry remains below recent levels due to channel inventory reductions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+1.4%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+0.2%

Avg return

30 days after

48%

12 / 25 earnings

Positive

+22.4%

Q1 2021

Best reaction

-14.9%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.7%-8.9%-10.7%
Q4 2025-4.6%+2.0%-15.6%
Q3 2025+11.8%+8.0%+7.3%
Q1 2025+5.2%+3.7%+4.7%
Q4 2024+2.6%-1.3%-4.5%
Q3 2024+12.2%+9.1%+9.3%
Q2 2024+9.6%+4.5%+8.8%
Q1 2024+4.5%+7.0%+7.2%
Q4 2023+9.5%+6.0%+17.0%
Q3 2023-7.8%-3.1%+2.5%
Q2 2023+9.3%+12.5%+10.9%
Q1 2023+0.2%-4.4%-8.1%
Q4 2022-4.2%-3.5%-11.0%
Q3 2022-4.1%-2.9%+3.6%
Q2 2022-14.9%-15.6%-19.8%
Q1 2022+2.6%-3.8%+0.4%
Q4 2019+3.5%-4.5%-0.5%
Q4 2021-2.8%-7.7%-4.3%
Q3 2021-5.2%-5.1%+2.4%
Q3 2020-5.2%-5.1%+2.4%
Q2 2021-0.5%-5.4%-12.1%
Q2 2020-0.5%-5.4%-12.1%
Q1 2020-1.6%+0.0%+0.5%
Q4 2020-1.6%+0.0%+0.5%
Q1 2021+22.4%+21.8%+26.0%

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