Analysts Just Cut Hayward Holdings, Inc. (NYSE:HAYW) Earnings Estimates by 14%

The latest analyst coverage could portend a bad day for Hayward Holdings, Inc. (NYSE:HAYW), with analysts making broad cuts to their statutory estimates that could leave shareholders a bit shocked. There’s been a pretty drastic reduction in their revenue estimates, perhaps an implicit admission that previous forecasts were far too optimistic.

Following the latest downgrade, the eleven analysts covering Hayward Holdings provided consensus revenue estimates of US$1.3 billion in 2022, which would reflect a difficult 11% decline in sales over the past 12 month. Prior to the latest estimates, analysts were forecasting revenue of $1.6 billion in 2022. Consensus seems to have turned more pessimistic on Hayward Holdings, noting the substantial drop in revenue estimates in this update.

Check out our latest analysis for Hayward Holdings

NYSE:HAYW Earnings and Revenue Growth August 6, 2022

Notably, analysts cut their price target by 22% to US$15.15, suggesting concerns over the valuation of Hayward Holdings. The consensus price target is only an average of individual analyst targets, so it might be useful to see how wide the range of the underlying estimates is. There are some different perceptions on Hayward Holdings, with the most bullish analyst pricing it at US$23.00 and the most bearish at US$12.00 per share. Notice the wide gap between analyst price targets? This implies to us that there is a fairly wide range of possible scenarios for the underlying activity.

Looking now at the bigger picture, one way to understand these forecasts is to see how they compare to both past performance and industry growth estimates. We highlight that sales are expected to reverse, with an expected decline in annualized revenue of 21% through the end of 2022. This is a notable change from the historical growth of 28% over the past year. ‘last year. In contrast, our data suggests that other companies (with analyst coverage) in the same industry are expected to see revenue growth of 4.3% per year for the foreseeable future. So while its revenue is expected to decline, there is no bright side to this cloud – Hayward Holdings is expected to lag the broader industry.

The essential

The most important thing to remember is that analysts have cut their revenue estimates for this year. They also expect the company’s earnings to fare worse than the broader market. The consensus price target fell measurably as analysts seemed unreassured by recent trading developments, leading to a lower estimate for Hayward Holdings’ future valuation. Often a downgrade can trigger a series of reductions, especially if an industry is in decline. So we wouldn’t be surprised if the market becomes much more cautious on Hayward Holdings after today.

Dissatisfied? At least one of Hayward Holdings’ eleven analysts has provided estimates through 2024, which can be viewed for free on our platform here.

Of course, see the management of the company invest large sums of money in a stock can be just as useful as knowing if analysts are lowering their estimates. So you can also search this free list of stocks that insiders buy.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Sallie R. Loera