Latham Group, Inc. SWIM is slated to release third-quarter 2024 results on Nov. 5, 2024, after market close.

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In the last quarter, the company’s adjusted earnings and net sales topped the Zacks Consensus Estimate by 275% and 2.6%, respectively. The bottom line grew 200% but the top line declined 9.6% year over year.

SWIM surpassed the consensus mark for earnings in two of the trailing four quarters, missed on one occasion and reported break-even earnings on the remaining occasion, with an average surprise of 90%.

SWIM’s Trend in Estimate Revision

The Zacks Consensus Estimate for adjusted earnings has remained unchanged at 7 cents per share over the past 60 days. The estimated figure indicates year-over-year growth of 40%.

Factors to Note Ahead of Latham’s Quarterly Results

Latham’s top line is expected to have been hurt by the ongoing macroeconomic risks and soft industry conditions resulting in a decline in sales volume. Product lines, including in-ground swimming pools, liners and covers are expected to have witnessed the primary sales decline. Moreover, headwinds from lower sales price are also likely to have added to the downtrend.

Although benefits from strategic growth initiatives and the acquisition of Coverstar Central are likely to have been encouraging for the prospects, the headwinds mentioned above are expected to have overshadowed the positives to a great extent.

On the other hand, the bottom line of SWIM is expected to have gained year over year on the back of its previously announced restructuring programs, the impact of production efficiencies resulting from lean manufacturing and value engineering programs, cost control initiatives and lower raw material costs.

The company has been tackling the challenging industry conditions with the help of strategic efforts meant to improve its cost structure, driving productivity gains and reducing working capital needs.

What the Zacks Model Unveils for SWIM

Our proven model does not conclusively predict an earnings beat for Latham this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Earnings ESP: SWIM has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some companies in the Zacks Construction sector, which per our model, have the right combination of elements to post an earnings beat in the respective quarters to be reported.

Toll Brothers, Inc. TOL currently has an Earnings ESP of +2.35% and a Zacks Rank of 2 at present.

TOL reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining one occasion, the average surprise being 7.8%. Earnings for the fiscal third quarter of 2024 are expected to increase 4.9% year over year.

Louisiana-Pacific Corporation LPX has an Earnings ESP of +2.29% and a Zacks Rank of 3.

LPX reported better-than-expected earnings in each of the last four quarters, the average surprise being 25.2%. The company’s earnings for the third quarter are expected to decline 45.7% from the prior year.

VSE Corporation VSEC currently has an Earnings ESP of +1.46% and a Zacks Rank of 3.

VSEC’s earnings for the third quarter are expected to decrease 31.5% year over year. The company reported better-than-expected earnings in two of the last four quarters and missed on the other two occasions, the average surprise being 11.8%.

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