What happened
Shares of pool equipment maker Hayward Holdings (HAYW 0.07%) jumped as much as 30.4% in trading Wednesday after reporting first-quarter 2021 financial results. Shares closed the day up 24.3%.
So what
Quarterly revenue jumped a whopping 96% to $334.4 million, and a net loss of $10.4 million a year ago swung to a net profit of $36.9 million, or $0.64 per share.
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Management also said that full-year fiscal 2021 revenue is expected to grow 40% to 45% versus a year ago and adjusted EBITDA -- earnings before interest, taxes, depreciation, and amortization -- is expected to increase 55% to 68% to between $360 million and $390 million. Given the company's market cap of $5.6 billion, shares are only trading at about 15 times EBITDA.
Now what
This is another example of residential housing and construction stocks booming during the pandemic. Homeowners have extra money from stimulus funds and money saved from discretionary purchases that have been put on hold. And they're putting that money into upgrading their houses. As long as the trend continues, Hayward's stock could move higher, and management expects it to be a great year.
