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Pool Corp (POOL) to Report Q1 Earnings: What's in the Cards?
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Pool Corporation (POOL - Free Report) is scheduled to report first-quarter 2023 results on Apr 20, before market open. In the last reported quarter, the company reported a negative earnings surprise of 10.50%.
How are Estimates Faring?
The Zacks Consensus Estimate for first-quarter earnings per share (EPS) is pegged at $3.38, indicating a deterioration of 23.4% from $4.41 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $1,298 million. The metric suggests a decline of 8.1% from the year-ago quarter’s figure.
Let’s discuss the factors that are likely to get reflected in the quarter to be reported.
Factors at Play
Pool Corp’s first-quarter operations will likely reflect the decline in new pool construction activity and softness in European markets. Disruptions on account of less favorable weather, prolonged geopolitical conflict (concerning Russia-Ukraine war), elevated energy costs, inflation and a slower economy are likely to have affected the company’s Europe operations in the to-be-reported quarter. In first-quarter 2023, our model predicts Base Business revenues to decline 6% year over year.
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 to-be-reported quarter. In the first quarter, our model predicts operating expenses (in base business) to increase 11% year over year.
The rise in new connected product adoption rates, supply chain enhancements, product mix changes, increases in private label and customer pricing are likely to have aided the company’s performance in the first quarter.
What Our Model Says
Our proven model does not conclusively predict 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 estimates. But that's not the case here.
Earnings ESP: Pool Corp has an Earnings ESP of -1.93%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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:
Wynn Resorts, Limited (WYNN - Free Report) has an Earnings ESP of +128.57% and a Zacks Rank #2.
Shares of Wynn Resorts have surged 51.6% in the past year. WYNN’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 0.6%.
Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +7.21% and a Zacks Rank #3.
The stock has declined 12.7% in the past year. CHH’s earnings surpassed the consensus mark twice in the trailing four quarters and missed twice, the average surprise being 3.5%.
Civeo Corporation (CVEO - Free Report) has an Earnings ESP of +38.46% and a Zacks Rank #3.
Shares of Civeo have declined 19.1% in the past year. CVEO’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 26.1%.
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Pool Corp (POOL) to Report Q1 Earnings: What's in the Cards?
Pool Corporation (POOL - Free Report) is scheduled to report first-quarter 2023 results on Apr 20, before market open. In the last reported quarter, the company reported a negative earnings surprise of 10.50%.
How are Estimates Faring?
The Zacks Consensus Estimate for first-quarter earnings per share (EPS) is pegged at $3.38, indicating a deterioration of 23.4% from $4.41 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $1,298 million. The metric suggests a decline of 8.1% from the year-ago quarter’s figure.
Pool Corporation Price and EPS Surprise
Pool Corporation price-eps-surprise | Pool Corporation Quote
Let’s discuss the factors that are likely to get reflected in the quarter to be reported.
Factors at Play
Pool Corp’s first-quarter operations will likely reflect the decline in new pool construction activity and softness in European markets. Disruptions on account of less favorable weather, prolonged geopolitical conflict (concerning Russia-Ukraine war), elevated energy costs, inflation and a slower economy are likely to have affected the company’s Europe operations in the to-be-reported quarter. In first-quarter 2023, our model predicts Base Business revenues to decline 6% year over year.
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 to-be-reported quarter. In the first quarter, our model predicts operating expenses (in base business) to increase 11% year over year.
The rise in new connected product adoption rates, supply chain enhancements, product mix changes, increases in private label and customer pricing are likely to have aided the company’s performance in the first quarter.
What Our Model Says
Our proven model does not conclusively predict 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 estimates. But that's not the case here.
Earnings ESP: Pool Corp has an Earnings ESP of -1.93%. 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 #3. 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 sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat:
Wynn Resorts, Limited (WYNN - Free Report) has an Earnings ESP of +128.57% and a Zacks Rank #2.
Shares of Wynn Resorts have surged 51.6% in the past year. WYNN’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 0.6%.
Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +7.21% and a Zacks Rank #3.
The stock has declined 12.7% in the past year. CHH’s earnings surpassed the consensus mark twice in the trailing four quarters and missed twice, the average surprise being 3.5%.
Civeo Corporation (CVEO - Free Report) has an Earnings ESP of +38.46% and a Zacks Rank #3.
Shares of Civeo have declined 19.1% in the past year. CVEO’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 26.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.