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 ...

May 2, 2024 Hayward Holdings Announces First Quarter Fiscal Year 2024 Financial Results FIRST QUARTER FISCAL 2024 SUMMARY CHARLOTTE, N.C. -- (BUSINESS WIRE) -- Hayward Holdings, Inc. (NYSE: HAYW) ("Hayward" or the "Company"), a global designer, manufacturer and marketer of a broad portfolio of pool and outdoor living technology, today announced financial results for the first quarter ended March 30, 2024 of its fiscal year 2024. Comparisons are to financial results for the prior-year first fiscal quarter. C ...

Sales and Revenue - North America and Europe & Rest of World segments accounted for approximately 83% and 17% of total net sales for Fiscal Year 2023, compared to 84% and 16% for Fiscal Year 2022[26]. - The largest customer represented approximately 36% of net sales in Fiscal Year 2023, with no other customer exceeding 10%[35]. - Approximately 50% of net sales are derived from non-discretionary products essential for pool operation[33]. - In Fiscal Year 2023, approximately 80% of residential pool equipment in the U.S. was sold through specialty distributors, with 13% sold directly to retailers and 7% to builders[42]. Operational Efficiency and Employee Engagement - The company employs approximately 1,875 full-time equivalent employees, with about 26% located at international sites[55]. - The company implemented over 680 employee suggestions for improvements during the twelve months ended December 31, 2023, fostering a culture of open feedback[70]. - The company is in the process of implementing a new ERP system and a human resources information system to improve operational efficiency, which may impact financial reporting[117]. Sustainability and Governance - The company is committed to sustainability, focusing on environmentally friendly and energy-efficient products, and has established a framework based on four pillars: Products, Planet, People, and Principles[63][64]. - In 2023, the company published an updated data sheet on Sustainability, enhancing transparency and information availability on its sustainability webpage[65]. - The company is committed to transparency and governance in its sustainability strategy, overseen by the Board of Directors[71]. Intellectual Property and Innovation - The company holds approximately 207 issued U.S. patents and 241 issued foreign patents as of December 31, 2023, covering various technologies[52]. - The company has approximately 50 pending U.S. patent applications and 68 pending foreign patent applications, indicating ongoing efforts to protect its intellectual property[144]. - The company faces risks related to the enforcement of its intellectual property rights, which could adversely affect its competitive position[149]. Financial Position and Debt - As of December 31, 2023, the company's total indebtedness was approximately $1,111.9 million, including $1,098.4 million under the first lien term loan facility[155]. - The company has an asset-based lending facility (ABL Facility) that allows borrowing up to an additional $425.0 million, with a current loan balance of zero[155]. - The company may require additional financing to fund operations or acquisitions, but such financing may not be available on acceptable terms[165]. - The company may incur additional debt in the future, which would increase its debt service obligations and associated risks[164]. Supply Chain and Manufacturing - The business is seasonal, with higher sales typically in the second and fourth quarters, driven by the summer pool season[45]. - The company relies on single-source and sole-source suppliers for certain components, which poses risks to product manufacturing and supply continuity[121][122]. - The company has experienced material cost inflation due to the COVID-19 pandemic, impacting raw material prices and manufacturing costs[109]. - The company experienced higher costs and delays due to supply chain disruptions related to the COVID-19 pandemic, impacting profitability[126]. - Manufacturing disruptions from catastrophic events could hinder the company's ability to meet customer demands and increase operational costs[125]. Regulatory and Compliance Risks - The company is subject to various governmental regulations, including environmental and safety regulations, which may result in increased compliance costs[129]. - Climate change and regulatory responses may adversely impact the company's business, including potential limitations on new pool construction due to drought conditions[142]. - Compliance with data privacy regulations, such as GDPR and CCPA, may impose significant costs and liabilities on the company[133]. - Violations of anti-corruption laws could lead to significant penalties and adversely affect the company's reputation and financial condition[140]. Market and Stock Performance - The market price of the company's common stock has been volatile and may fluctuate significantly due to various uncontrollable factors[172]. - The company is currently subject to a securities class action lawsuit, which may incur substantial costs and divert management's attention from business operations[172].

February 29, 2024 Hayward Holdings Announces Fourth Quarter and Full Year 2023 Financial Results and Introduces 2024 Guidance FOURTH QUARTER FISCAL 2023 SUMMARY FULL FISCAL YEAR 2023 HIGHLIGHTS CHARLOTTE, N.C. -- (BUSINESS WIRE) -- Hayward Holdings, Inc. (NYSE: HAYW) ("Hayward" or the "Company"), a global designer, manufacturer, and marketer of a broad portfolio of pool and outdoor living technology, today announced financial results for the fourth quarter and full fiscal year ended December 31, 2023. CEO C ...