Core Insights - Investors in the Electronics - Miscellaneous Products sector should consider Hayward Holdings, Inc. (HAYW) and Garmin (GRMN) for potential value opportunities [1] Valuation Metrics - HAYW has a forward P/E ratio of 24.88, while GRMN has a forward P/E of 28.76, indicating HAYW may be undervalued compared to GRMN [5] - HAYW's PEG ratio is 2.41, which is lower than GRMN's PEG ratio of 3.01, suggesting HAYW has a more favorable earnings growth outlook relative to its price [5] - HAYW's P/B ratio is 2.42, compared to GRMN's P/B of 4.77, further indicating HAYW's relative undervaluation [6] Zacks Rank and Style Scores - HAYW currently holds a Zacks Rank of 2 (Buy), while GRMN has a Zacks Rank of 3 (Hold), suggesting a stronger earnings outlook for HAYW [3] - HAYW has a Value grade of B, whereas GRMN has a Value grade of D, indicating HAYW is viewed more favorably by value investors [6]

Core Viewpoint - Hayward Holdings, Inc. (HAYW) is currently positioned as a more attractive investment opportunity compared to Garmin (GRMN) based on valuation metrics and earnings outlook [1]. Group 1: Zacks Rank and Earnings Outlook - HAYW has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while GRMN has a Zacks Rank of 3 (Hold) [3]. - The positive earnings outlook for HAYW suggests a stronger potential for earnings improvement compared to GRMN [3]. Group 2: Valuation Metrics - HAYW has a forward P/E ratio of 22.30, significantly lower than GRMN's forward P/E of 30.21, indicating that HAYW may be undervalued [5]. - The PEG ratio for HAYW is 2.16, while GRMN's PEG ratio is higher at 3.16, suggesting HAYW offers better value relative to its expected earnings growth [5]. - HAYW's P/B ratio stands at 2.17, compared to GRMN's P/B of 5.01, further supporting the notion that HAYW is undervalued [6]. Group 3: Value Grades - HAYW holds a Value grade of B, while GRMN has a Value grade of D, indicating that HAYW is viewed more favorably in terms of value investment criteria [6]. - The combination of Zacks Rank and Style Scores indicates that HAYW is the better option for value investors at this time [6].

Investors interested in stocks from the Electronics - Miscellaneous Products sector have probably already heard of Hayward Holdings, Inc. (HAYW) and Hoya Corp. (HOCPY) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look. We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings e ...

Investors interested in Electronics - Miscellaneous Products stocks are likely familiar with Hayward Holdings, Inc. (HAYW) and Hoya Corp. (HOCPY) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look. There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an e ...

Financial Data and Key Metrics Changes - Net sales for the second quarter increased modestly year-over-year to $284 million, with adjusted EBITDA increasing 4% to $83 million and adjusted EBITDA margin rising 100 basis points year-over-year to 29% [22][23][39] - Gross profit margin expanded 290 basis points year-over-year to a record 51%, marking the sixth consecutive quarter of year-over-year margin expansion [23][37] - Cash flow from operations increased 26% year-over-year in the first half, contributing to a year-to-date free cash flow increase of 32% to $199 million [10][55] Business Line Data and Key Metrics Changes - North American net sales increased 2% to $241 million, driven by favorable pricing, while net sales in Europe and Rest of World decreased 6% to $43 million due to lower volumes [52][53] - Commercial pool sales in North America continued to increase on an organic basis, reflecting a multiyear trend of robust growth [12] Market Data and Key Metrics Changes - The number of U.S. permits for new pools is down in the mid to high teens, but the value of permits remains resilient, indicating strength in high-end new construction and remodel segments [41][108] - Europe saw a 7% sales growth in the quarter, while Rest of World sales declined 21% due to macroeconomic and geopolitical conditions [39][53] Company Strategy and Development Direction - The company is focused on driving growth in the commercial segment through both organic and inorganic means, including the acquisition of ChlorKing, which is expected to nearly double sales in the commercial market [5][47] - The company is implementing value-based pricing strategies and SKU rationalization to optimize pricing and ensure products are appropriately priced relative to the value provided [18][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term health and growth profile of the pool industry, particularly in the aftermarket, despite current challenges in new construction and remodels [57][111] - The company narrowed its full-year guidance, expecting net sales to increase approximately 2% to 5% and adjusted EBITDA to increase approximately 3% to 9% [11][29] Other Important Information - The company completed a voluntary early debt repayment of approximately $123 million, resulting in annualized interest expense savings of about $10 million [28] - Total liquidity at the end of the quarter was $448 million, providing financial flexibility for strategic plans [54] Q&A Session Summary Question: What are the opportunities seen with the acquisition of ChlorKing? - Management highlighted that ChlorKing positions the company well in the commercial market, particularly in the Class A segment, and offers cross-selling opportunities with existing products [86][90] Question: What is the outlook for new pool construction? - Management indicated that while the current year is weak, they believe this is a low watermark and expect a rebound in new pool construction as interest rates stabilize [109][111] Question: Can you provide details on ChlorKing's revenue contribution? - ChlorKing is expected to contribute approximately $25 million in annualized revenue, with a more significant impact in the first half of the year [71] Question: How does the company view pricing and SKU optimization? - Management noted that SKU rationalization has received increased attention, and they see opportunities to adjust pricing to better reflect the value provided [84][117] Question: What is the company's approach to capital allocation? - The company maintains a disciplined financial policy, prioritizing strategic growth investments and debt repayment while considering opportunistic share repurchases [63][144]

Over the last four quarters, the company has surpassed consensus EPS estimates two times. Hayward Holdings shares have lost about 0.8% since the beginning of the year versus the S&P 500's gain of 14.5%. While Hayward Holdings has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this ...

Adjusted EBITDA* increased to $82.6 million for the second quarter of fiscal 2024 from $79.5 million in the prior-year period. Adjusted EBITDA margin* expanded 100 basis points to 29.0%. North America BALANCE SHEET AND CASH FLOW The pool industry remains attractive and benefits from sustainable secular demand trends in outdoor living. Hayward continues to leverage our competitive advantages and drive increasing adoption of our leading SmartPad™ pool equipment products both in new construction and the afterm ...

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). How Have the Numbers Shaped Up for Hayward Holdings? For Hayward Holdings, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings pro ...

Company Participants Andrew Carter - Stifel Ryan Merkel - William Blair Jeff Hammond - KeyBanc Jae Hyun Ko - Jefferies Michael Pesendorfer - Baird Rafe Jadrosich - Bank of America Kevin Maczka Hayward Holdings, Inc. (NYSE:HAYW) Q1 2024 Earnings Conference Call May 2, 2024 9:00 AM ET Conference Call Participants Good morning, ladies and gentlemen, and welcome to Hayward Holdings First Quarter 2024 Earnings Call. My name is Lester and I will be your operator for today. [Operator Instructions] Please note that ...

Hayward Holdings, Inc. (HAYW) came out with quarterly earnings of $0.08 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this company would post earnings of $0.18 per share when it actually produced earnings of $0.20, delivering a surprise of 11.11%.Over the last four quarters, the company has surpassed consensus EPS estimates two times.Hayward Holdings, which ...