Hayward reports Q3 EPS 5c, consensus 8c

Reports Q3 revenue $220.3M, consensus $210.5M. “Our third quarter results were consistent with expectations, reflecting continued execution amid challenging operating conditions,” said Kevin Holleran, Hayward’s President and Chief Executive Officer. “We delivered strong gross profit margin expansion of nearly 400 basis points and generated cash flow through operational excellence and effective cost control. We are encouraged by progressively leaner channel inventory levels reported by our primary U.S. distributors and increased early buy orders compared to last year. However, channel partners are generally taking a cautious approach given the macroeconomic uncertainty and rising interest rate environment. While our outlook for the US and Europe is modestly reduced, we are updating our near-term outlook primarily as a consequence of additional pressure in Canada and other international markets. Longer-term, we have established a solid foundation for profitable growth and shareholder value creation, and we continue to invest in the business to enhance our competitive advantages.”