Residential swimming pool manufacturer Latham (NASDAQ:SWIM) will be reporting earnings tomorrow after market close. Here’s what to expect.

Latham missed analysts’ revenue expectations by 2.3% last quarter, reporting revenues of $150.5 million, down 6.4% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations.

Is Latham a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Latham’s revenue to decline 5.5% year on year to $85.87 million, improving from the 15.8% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.10 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Latham has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Latham’s peers in the leisure products segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Malibu Boats’s revenues decreased 5.1% year on year, beating analysts’ expectations by 4.8%, and Acushnet reported revenues up 7.8%, falling short of estimates by 2.1%. Malibu Boats’s stock price was unchanged after the results, while Acushnet was down 2.8%.

Read our full analysis of Malibu Boats’s results here and Acushnet’s results here.

Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The U.S. Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the leisure products stocks have shown solid performance, the group has generally underperformed, with share prices down 3% on average over the last month. Latham is down 18% during the same time and is heading into earnings with an average analyst price target of $7.01 (compared to the current share price of $5.77).

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