Yahoo Finance Analysts Just Shaved Their Hayward Holdings, Inc. (NYSE:HAYW) Forecasts Dramatically
The latest analyst coverage could presage a bad day for Hayward Holdings, Inc. (NYSE:HAYW), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.
Following the downgrade, the consensus from eleven analysts covering Hayward Holdings is for revenues of US$1.3b in 2022, implying an uneasy 11% decline in sales compared to the last 12 months. Statutory earnings per share are presumed to soar 40% to US$0.96. Before this latest update, the analysts had been forecasting revenues of US$1.6b and earnings per share (EPS) of US$1.15 in 2022. Indeed, we can see that the analysts are a lot more bearish about Hayward Holdings' prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.
See our latest analysis for Hayward Holdings
It'll come as no surprise then, to learn that the analysts have cut their price target 20% to US$15.45. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Hayward Holdings analyst has a price target of US$23.00 per share, while the most pessimistic values it at US$15.00. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 21% by the end of 2022. This indicates a significant reduction from annual growth of 28% over the last year. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.7% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Hayward Holdings is expected to lag the wider industry.
The Bottom Line
The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Hayward Holdings. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Hayward Holdings.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Hayward Holdings analysts - going out to 2024, and you can see them free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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