Hayward Holdings Q2 Net Sales Tops Estimates; Raises FY21 Guidance

Hayward Holdings Inc HAYW reported second-quarter FY21 sales growth of 65.6% year-on-year, to $364.4 million, beating the analyst consensus of $339.28 million.
Net sales from North America increased 66% Y/Y to $293.6 million, and Europe & the rest of the world grew 66% to $70.8 million.
The increase in net sales was primarily driven by higher volumes, mainly in residential pool equipment sales.
Gross profit increased 72% Y/Y to $168.0 million, and profit margin expanded 161 basis points to 46%.
The operating margin was 22.2%, and operating income for the quarter rose 132% to $81 million.
The company held $251.9 million in cash and equivalents as of July 3, 2021.
Adjusted EBITDA increased 81% Y/Y to $110.4 million. Adjusted EBITDA margin expanded 257 basis points Y/Y to 30.3%.
GAAP EPS for the quarter was $0.22.
"During the quarter we continued to see strong demand for our products across all categories, reflecting the ongoing secular trends in outdoor living and Hayward's ability to leverage its competitive advantages," said CEO Kevin Holleran.
Outlook: Hayward raised the FY21 revenue growth outlook to 54%-58% from 40%-45%, versus the consensus of $1.26 billion.
The company raised FY21 adjusted Adjusted EBITDA forecast to $405 million - $425 million from the previous outlook of $360 million - $390 million.
Price action: HAYW shares closed lower by 0.70% at $24.09 on Friday.

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