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Factors Setting the Tone for Pool Corp (POOL) Q3 Earnings

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Pool Corporation (POOL - Free Report) is scheduled to report third-quarter 2020 results on Oct 22, before market open. In the last reported quarter, the company delivered earnings surprise of 25.2%. Further, the company has a trailing four-quarter earnings surprise of 16%, on average.

How Are Estimates Faring?

The Zacks Consensus Estimate for third-quarter earnings is pegged at $2.14, which indicates growth of 16.3% from $1.84 registered in the year-ago quarter.

For revenues, the consensus mark stands at nearly $989.7 million that suggests increase of 10.2% from the prior-year quarter’s figure.

Let’s analyze the factors that are likely to make an impact this earnings season.

Pool Corporation Price and EPS Surprise Pool Corporation Price and EPS Surprise

Pool Corporation price-eps-surprise | Pool Corporation Quote

Factors at Play

As government restrictions in many jurisdictions began to ease, Pool Corp is witnessing rise in demand for new pools. This along with a surge in repair and maintenance requests as well as rise in backlogs are likely to have driven Pool Corps third-quarter top line. Also, solid demand across European regions is likely to be witnessed in the to-be-reported quarter. Moreover, robust base business is expected to have positively impacted the company’s results.

However, higher labor and delivery costs as well as investments in information technology systems and hardware are likely to have bumped up expenses in the to-be-reported quarter. This along with pricing pressure from competitors to maintain sufficient cash flow is a potent headwind.

What Our Model Says

Our proven model predicts an earnings beat for Pool Corp this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings.

Earnings ESP: Pool Corp has an Earnings ESP of +0.82%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Camping World Holdings, Inc. (CWH - Free Report) has a Zacks Rank #1 and an Earnings ESP of +18.7%.

Brunswick Corporation (BC - Free Report) has a Zacks Rank #2 and an Earnings ESP of +2.75%.

Activision Blizzard, Inc. has a Zacks Rank #2 and an Earnings ESP of +5.35%.

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