These Analysts Cut Their Forecasts On Latham Group After Q4 Results

Latham Group, Inc. SWIM posted upbeat sales for its fourth quarter on Tuesday.

Latham Group posted quarterly sales of $90.867 million, beating market estimates of $87.207 million, according to data from Benzinga Pro. The company posted quarterly net income of $0.1 million versus a year-ago net loss of $19.0 million.

Scott Rajeski, President and CEO, said, “Latham navigated a very difficult market environment in 2023. We successfully implemented cost reduction programs and lean manufacturing initiatives that structurally reduced our cost basis, while maintaining our investments in future growth. These cost reduction programs improved margins as the year progressed and we expect they will enable us to considerably expand margins and overall profitability once volumes recover. At the same time, we increased productivity and efficiency for our dealers, developed new fiberglass pool models, and invested in digital tools that have enhanced the consumer’s pool buying experience. As a result of these actions, Latham is positioned for meaningful market share gains as overall industry conditions improve.”

Latham Group said it sees FY24 revenue of $490 million to $520 million, versus analysts’ estimates of $546.746 million. The company expects first-quarter sales of $98 million to $104 million, versus expectations of 130.468 million.

Latham Group shares fell 0.6% to close at $3.28 on Tuesday.

These analysts made changes to their price targets on Latham Group following merger news

• Barclays cut the price target on Latham Group from $3 to $2.5. Barclays analyst Matthew Bouley maintained an Equal-Weight rating.
• B of A Securities slashed the price target on Latham Group from $4.5 to $2.6. B of A Securities analyst Rafe Jadrosich downgraded the stock from Buy to Underperform.

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