NYSE$HAYW

Hayward Holdings Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Hayward's financial performance declined due to lower sales volume and macroeconomic factors.

Hayward Holdings reported a 30% decrease in net sales to $245.3 million for the third quarter of fiscal year 2022. Net income decreased by 54% to $23.1 million, and adjusted diluted EPS decreased by 43% to $0.14. The decline in sales was attributed to distribution channel destocking, macroeconomic uncertainty, and geopolitical factors in Europe.

  • Net sales decreased 30% year-over-year to $245.3 million.
  • Net Income decreased 54% year-over-year to $23.1 million.
  • Adjusted EBITDA decreased 39% year-over-year to $60.4 million.
  • Adjusted diluted EPS decreased 43% year-over-year to $0.14.

Headline financials

Total Revenue

$245M

Previous: $351M-30.0%
EPS (adj)

$0.14

Previous: $0.26-46.2%
Adjusted EBITDA

$60.4M

No prior period
Gross Profit Margin

43.9%

No prior period
Capital Expenditures

-$23.5M

Previous: -$19.1M-23.2%
Free Cash Flow

-$446K

Previous: $31.2M-101.4%
Net Income

$23.1M

Previous: $50.3M-54.1%
Operating Income

$40.3M

Previous: $77.8M-48.1%
Gross Profit

$108M

Previous: $162M-33.7%
Cash & Equivalents

$72.9M

Previous: $295M-75.3%
Total Assets

$2.83B

Previous: $2.85B-0.5%
Stock-Based Comp

$2.16M

Previous: $808K+166.7%

Revenue & EPS history

Hayward · Revenue · Quarterly

$245M

Q3 2022-30%vs Q3 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Hayward is refining its full fiscal year 2022 guidance to reflect higher than expected inflation impacting the fourth quarter, normalizing channel inventory levels and geopolitical events in Europe. For fiscal year 2022, Hayward now expects net sales to decrease approximately 6% from prior year, and Adjusted EBITDA of $365 million to $370 million.

Tailwinds

  • Increasing consumer demand for pool equipment products in the U.S.
  • Demand for SmartPadTM products into the aftermarket.
  • Long-term outlook for profitable growth
  • Long-term outlook for robust cash flow generation
  • Driven by new product innovation, growing commercial relationships with prominent pool dealers and builders, and agile manufacturing capabilities.

Headwinds

  • Higher than expected inflation impacting the fourth quarter
  • Normalizing channel inventory levels
  • Geopolitical events in Europe
  • Net sales expected to decrease approximately 6% from prior year
  • Adjusted EBITDA of $365 million to $370 million

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 Q3 2022

Historical avgQ3 2022

+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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