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Factors Setting the Tone for Pool Corp (POOL) Q1 Earnings
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Pool Corporation (POOL - Free Report) is scheduled to report first-quarter 2022 results on Apr 21, before market open. In the last reported quarter, the company delivered an earnings surprise of 16.8%.
How are Estimates Faring?
The Zacks Consensus Estimate for first-quarter earnings is pegged at $3.06, which indicates growth of 26.5% from $2.42 registered in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $1,252 million, suggesting an increase of 18% from the prior-year quarter’s figure.
Let’s analyze the factors that are likely to make an impact this earnings season.
Factors at Play
Pool Corp’s first-quarter top line is likely to have benefitted from solid demand for pool supplies and maintenance products, new pool construction activities and capacity-creation initiatives. Given the rapid adoption of the work-from-home trend, more optimism can be witnessed as people are willing to invest in pool, patio, outdoor kitchen or remodel projects. Emphasis on the expansion of the international distribution network coupled with enhancements to Pool360 are likely to have driven adoption and customer engagement in the to-be-reported quarter.
Solid contributions from its acquired Pool Source, Vak Pak Builders Supply and Porpoise Pool & Patio, coupled with the winter weather anomaly effect and an increase in selling days (on a year-over-year basis), are likely to have boosted revenues in the first quarter. This along with emphasis on volume-related incentive programs, supply chain initiatives, pricing management and product mix, are likely to have boosted margins in the to-be-reported quarter.
However, the rise in labor and delivery costs is likely to have flared up expenses in the first quarter. This along with the pandemic-induced supply and carrier constraints is likely to have hurt performance in the to-be-reported quarter.
What Our Model Says
Our proven model predicts an earnings beat for Pool Corp this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Pool Corp has an Earnings ESP of +2.53%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other 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:
OneWater Marine Inc. (ONEW - Free Report) has an Earnings ESP of +0.12% and a Zacks Rank #2.
Shares of OneWater have declined 25.8% in the past year. ONEW’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 59%.
Penn National Gaming, Inc. (PENN - Free Report) has an Earnings ESP of +3.30% and a Zacks Rank #3.
Shares of Penn National have declined 13.3% in the past three months. PENN’s earnings surpassed the consensus mark twice in the trailing four quarters and missed twice, the average surprise being 6.9%.
Hasbro, Inc. (HAS - Free Report) has an Earnings ESP of +0.24% and a Zacks Rank #3.
Shares of Hasbro have declined 13% in the past year. HAS’ earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 53.9%.
Image: Bigstock
Factors Setting the Tone for Pool Corp (POOL) Q1 Earnings
Pool Corporation (POOL - Free Report) is scheduled to report first-quarter 2022 results on Apr 21, before market open. In the last reported quarter, the company delivered an earnings surprise of 16.8%.
How are Estimates Faring?
The Zacks Consensus Estimate for first-quarter earnings is pegged at $3.06, which indicates growth of 26.5% from $2.42 registered in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $1,252 million, suggesting an increase of 18% from the prior-year quarter’s figure.
Pool Corporation Price and EPS Surprise
Pool Corporation price-eps-surprise | Pool Corporation Quote
Let’s analyze the factors that are likely to make an impact this earnings season.
Factors at Play
Pool Corp’s first-quarter top line is likely to have benefitted from solid demand for pool supplies and maintenance products, new pool construction activities and capacity-creation initiatives. Given the rapid adoption of the work-from-home trend, more optimism can be witnessed as people are willing to invest in pool, patio, outdoor kitchen or remodel projects. Emphasis on the expansion of the international distribution network coupled with enhancements to Pool360 are likely to have driven adoption and customer engagement in the to-be-reported quarter.
Solid contributions from its acquired Pool Source, Vak Pak Builders Supply and Porpoise Pool & Patio, coupled with the winter weather anomaly effect and an increase in selling days (on a year-over-year basis), are likely to have boosted revenues in the first quarter. This along with emphasis on volume-related incentive programs, supply chain initiatives, pricing management and product mix, are likely to have boosted margins in the to-be-reported quarter.
However, the rise in labor and delivery costs is likely to have flared up expenses in the first quarter. This along with the pandemic-induced supply and carrier constraints is likely to have hurt performance in the to-be-reported quarter.
What Our Model Says
Our proven model predicts an earnings beat for Pool Corp this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Pool Corp has an Earnings ESP of +2.53%. 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.
Other Stocks Poised to Beat Earnings Estimates
Here are some other 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:
OneWater Marine Inc. (ONEW - Free Report) has an Earnings ESP of +0.12% and a Zacks Rank #2.
Shares of OneWater have declined 25.8% in the past year. ONEW’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 59%.
Penn National Gaming, Inc. (PENN - Free Report) has an Earnings ESP of +3.30% and a Zacks Rank #3.
Shares of Penn National have declined 13.3% in the past three months. PENN’s earnings surpassed the consensus mark twice in the trailing four quarters and missed twice, the average surprise being 6.9%.
Hasbro, Inc. (HAS - Free Report) has an Earnings ESP of +0.24% and a Zacks Rank #3.
Shares of Hasbro have declined 13% in the past year. HAS’ earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 53.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.