Pool Corporation (POOL Quick QuotePOOL - Free Report) is scheduled to report second-quarter 2021 results on Jul 22, before market open.

In the last reported quarter, the company’s sales and earnings beat the Zacks Consensus Estimate by 29.2% and 101.7%, and increased 57% and 168.9% on a year-over-year basis, respectively. Markedly, the company beat earnings expectations in the last eight quarters, with the average being 35.1%. The outperformance was led by solid performance of the Base business and Excluded segments. Also, the company witnessed solid demand for residential pool products on the back of stay-at-home trends.

Trend in Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has moved 22.9% upward to $5.37 over the past 90 days. The estimated figure indicates an increase of 38.8% from 3.87 cents per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $1,660 million, suggesting 29.6% growth from the year-ago reported figure of $1280 million.

Factors to Consider

The company’s earnings and revenues for second-quarter 2021 are expected to improve  on a year-over-year basis, backed by the solid backlog trend and robust base business. During first-quarter 2021, revenues from base business increased 50.7% year over year. Also, robust housing market demand for Pool Corp’s products, including demand for swimming pool maintenance supplies, above ground pools, spas, and automatic pool cleaners, heaters, pumps, lights, chemicals and filters, is likely to have aided the quarterly performance.

Pool Corp is likely to have witnessed accelerated rise in revenues in the quarter to be reported as the company has been foraying into newer geographic locations, expanding in existing markets and launching innovative product categories along with expanding through acquisitions. Notably, its acquired Master Tile, Northeastern Swimming Pool Distributors, Jet Line Products and TWC Distributors businesses are also likely to have boosted revenues in the to-be-reported quarter.

However, rising labor and delivery costs and investments in information technology systems and hardware are bumping up expenses. Also, the company is witnessing a rise in material costs that are likely to exert pressure on the company’s second-quarter margins as well.

What Our Model Indicates

Our proven model does not conclusively predict an earnings beat for Pool Corp this time around. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here, as you will see below.

Earnings ESP: Earnings ESP for Pool Corp is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With Favorable Combination

Here are some companies in the Zacks Consumer Discretionary sector, which according to our model, have the right combination of elements to post an earnings beat in their respective quarters to be reported.

Boyd Gaming Corporation (BYD Quick QuoteBYD - Free Report) has an Earnings ESP of + 54.29% and a Zacks Rank #1.

AMC Entertainment Holdings, Inc. (AMC Quick QuoteAMC - Free Report) has an Earnings ESP of +8.79% and a Zacks Rank #2.

Accel Entertainment, Inc. (ACEL Quick QuoteACEL - Free Report) has an Earnings ESP of +4.55% and a Zacks Rank #3.