What Happened?
Shares of residential swimming pool manufacturer Latham (NASDAQ: SWIM) jumped 12.6% in the afternoon session after 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.
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What Is The Market Telling Us
Latham’s shares are extremely volatile and have had 31 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 12 months ago when the stock gained 32.8% on the news that the company reported strong fourth quarter 2024 results and provided optimistic full-year revenue and EBITDA guidance, which beat analysts' expectations. Precisely, the company projected an 8% sales increase and nearly 19% adjusted EBITDA growth in 2025, supported by market share gains in fiberglass pools and the benefits of its Coverstar acquisition. Sales also exceeded Wall Street's estimates during the quarter. On the other hand, its EPS missed. Still, this quarter had some key positives.
Latham is up 14.1% since the beginning of the year, but at $7.23 per share, it is still trading 12.4% below its 52-week high of $8.25 from August 2025. Investors who bought $1,000 worth of Latham’s shares at the IPO in April 2021 would now be looking at an investment worth $265.14.
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