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POOL Gears Up for Q3 Earnings: Here's What You Can Expect
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Pool Corporation (POOL - Free Report) is scheduled to report its third-quarter 2022 results on Oct 20, before the market open. In the last reported quarter, the company delivered an earnings surprise of 2.6%.
How Are Estimates Faring?
The Zacks Consensus Estimate for third-quarter earnings is pegged at $4.65, which indicates growth of 3.1% from $4.51 registered in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $1,618 million, suggesting an increase of 14.6% 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’s third-quarter top line is likely to have benefited from solid demand along with healthy contractor backlogs and capacity-creation initiatives. This, along with the solid performance of the base business, large market presence and strategic expansions through acquisitions, bodes well. Solid demand for connected and smart technology products like automation, variable speed pumps, robotic cleaners and customizations are likely to have driven the top line.
Given the products’ importance in repair, replacement, new construction and remodeling activities, the continuation of demand is likely to boost the company’s performance during the third quarter of 2022.
The company’s results are also likely to have been aided by products (such as automation and the connected pool) and the addition of NPT centers and capabilities. This, and the focus on Porpoise Pool & Patio acquisition, supply chain initiatives and pricing management, are likely to have driven the company’s performance in the to-be-reported quarter.
However, rising labor and freight costs, investments in digital transformation initiatives and expansion of the sales center network are likely to have flared up expenses in the third quarter. This, and the logistical slowdowns in Southern Europe, are likely to have affected the company’s operations in the to-be-reported quarter.
Our proven model does not conclusively predict an earnings beat for Pool this time around. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase its odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Pool has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).
Stock With Favorable Combinations
Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat:
Shares of RCI Hospitality have improved 2.2% in the past year. RICK’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 39.4%.
JAKKS Pacific, Inc. (JAKK - Free Report) has an Earnings ESP of +3.25% and a Zacks Rank #3.
Shares of JAKKS Pacific have improved 47.5% in the past year. JAKK’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 155%.
Cedar Fair, L.P. (FUN - Free Report) has an Earnings ESP of +2.38% and a Zacks Rank #3.
Shares of Cedar Fair have declined 13.9% in the past year. FUN’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 5.3%.
Image: Bigstock
POOL Gears Up for Q3 Earnings: Here's What You Can Expect
Pool Corporation (POOL - Free Report) is scheduled to report its third-quarter 2022 results on Oct 20, before the market open. In the last reported quarter, the company delivered an earnings surprise of 2.6%.
How Are Estimates Faring?
The Zacks Consensus Estimate for third-quarter earnings is pegged at $4.65, which indicates growth of 3.1% from $4.51 registered in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $1,618 million, suggesting an increase of 14.6% 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’s third-quarter top line is likely to have benefited from solid demand along with healthy contractor backlogs and capacity-creation initiatives. This, along with the solid performance of the base business, large market presence and strategic expansions through acquisitions, bodes well. Solid demand for connected and smart technology products like automation, variable speed pumps, robotic cleaners and customizations are likely to have driven the top line.
Given the products’ importance in repair, replacement, new construction and remodeling activities, the continuation of demand is likely to boost the company’s performance during the third quarter of 2022.
The company’s results are also likely to have been aided by products (such as automation and the connected pool) and the addition of NPT centers and capabilities. This, and the focus on Porpoise Pool & Patio acquisition, supply chain initiatives and pricing management, are likely to have driven the company’s performance in the to-be-reported quarter.
However, rising labor and freight costs, investments in digital transformation initiatives and expansion of the sales center network are likely to have flared up expenses in the third quarter. This, and the logistical slowdowns in Southern Europe, are likely to have affected the company’s operations in the to-be-reported quarter.
Pool Corporation Price and EPS Surprise
Pool Corporation price-eps-surprise | Pool Corporation Quote
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Pool this time around. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase its odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Pool has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).
Stock With Favorable Combinations
Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat:
RCI Hospitality Holdings, Inc. (RICK - Free Report) has an Earnings ESP of +4.15% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of RCI Hospitality have improved 2.2% in the past year. RICK’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 39.4%.
JAKKS Pacific, Inc. (JAKK - Free Report) has an Earnings ESP of +3.25% and a Zacks Rank #3.
Shares of JAKKS Pacific have improved 47.5% in the past year. JAKK’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 155%.
Cedar Fair, L.P. (FUN - Free Report) has an Earnings ESP of +2.38% and a Zacks Rank #3.
Shares of Cedar Fair have declined 13.9% in the past year. FUN’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 5.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.