What Happened?
Shares of residential swimming pool manufacturer Latham (NASDAQ: SWIM)
jumped 26.8% in the afternoon session after the company reported better-than-expected second-quarter revenue and raised its full-year sales guidance. The company's quarterly revenue grew 14.4% year-on-year to $197.5 million, surpassing analyst expectations.
Buoyed by this performance, Latham lifted its full-year revenue guidance to a midpoint of $610 million, which also came in above estimates. The positive outlook overshadowed a mixed quarter for profitability, as both its GAAP earnings per share and adjusted EBITDA fell short of Wall Street's forecasts. Investors appeared to focus on the strong sales momentum and optimistic revenue forecast, signaling confidence in the company's growth prospects.
The shares closed the day at $7.29, up 27.8% from the previous close.
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What Is The Market Telling Us
Latham’s shares are very volatile and have had 23 moves greater than 5% over the last year. But moves this big are rare even for Latham and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock gained 12.6% on the news that the company reported strong fourth-quarter financial results that surpassed expectations and provided an upbeat outlook for 2026. The company's revenue for the quarter grew 14.5% year over year to $99.95 million, exceeding analysts' projections. Latham also posted a GAAP loss of $0.06 per share, which was better than the loss Wall Street had anticipated. Adding to the positive sentiment, the company's full-year revenue guidance of $595 million and EBITDA guidance of $112.5 million both came in above consensus estimates, suggesting confidence in its future performance.
Latham is up 11.1% since the beginning of the year, but at $7.04 per share, it is still trading 14.7% below its 52-week high of $8.25 from August 2025. Despite the year-to-date gain, investors who bought $1,000 worth of Latham’s shares 5 years ago would now be looking at only $325.25.
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