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Factors Setting the Tone for Pool Corp (POOL) Q2 Earnings
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Pool Corporation (POOL - Free Report) is scheduled to report second-quarter 2023 results on Jul 20, before market open. In the last reported quarter, the company reported a negative earnings surprise of 24.5%.
How are Estimates Faring?
The Zacks Consensus Estimate for second-quarter earnings per share (EPS) is pegged at $6.16, indicating a deterioration of 18.8% from $7.59 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $1,880 million. The metric suggests a decline of 8.5% 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 second-quarter performance is likely to have been impacted by a decline in new pool construction activity. Factors like adverse weather delays, interest rates, consumer spending, softness in European markets and the end of COVID tailwinds are likely to have affected the company’s operations in the to-be-reported quarter.
Dismal contributions from The Base Business and the Excluded are likely to get reflected in the second-quarter top line. The Zacks Consensus Estimate for second-quarter Base Business revenues is pegged at $1,809 million, indicating a decline of 7.9% year over year. The consensus mark for Excluded revenues is pegged at $29.8 compared with $91.8 million reported in the prior-year quarter.
Inflationary cost increases in areas of facilities, freight, insurance, IT, advertising and marketing are likely to have flared up expenses in the to-be-reported quarter. Per our model, operating expenses (in base business) is expected to increase 8.9% (year over year) in the second quarter.
Strength in renovation and remodelling activities coupled with the emphasis on Porpoise Pool & Patio acquisition, supply chain initiatives, capacity creation efforts and pricing management are likely to have aided the company’s performance in the to-be-reported 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 0.00%. 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:
MGM Resorts International (MGM - Free Report) has an Earnings ESP of +38.00% and a Zacks Rank #3.
Shares of MGM Resorts have increased 11.7% in the past three months. MGM’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 81%.
Penn National Gaming, Inc. (PENN - Free Report) has an Earnings ESP of +13.44% and a Zacks Rank #3.
Shares of Penn National have declined 4.8% in the past three months. PENN’s earnings beat estimates in one of the trailing four quarters and missed thrice, the average negative surprise being 15%.
Hasbro, Inc. (HAS - Free Report) has an Earnings ESP of +16.67% and a Zacks Rank #3.
Shares of Hasbro have increased 23.1% in the past three months. HAS’ earnings beat estimates in two of the trailing four quarters and missed twice, the average negative surprise being 12.7%.
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Factors Setting the Tone for Pool Corp (POOL) Q2 Earnings
Pool Corporation (POOL - Free Report) is scheduled to report second-quarter 2023 results on Jul 20, before market open. In the last reported quarter, the company reported a negative earnings surprise of 24.5%.
How are Estimates Faring?
The Zacks Consensus Estimate for second-quarter earnings per share (EPS) is pegged at $6.16, indicating a deterioration of 18.8% from $7.59 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $1,880 million. The metric suggests a decline of 8.5% 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 second-quarter performance is likely to have been impacted by a decline in new pool construction activity. Factors like adverse weather delays, interest rates, consumer spending, softness in European markets and the end of COVID tailwinds are likely to have affected the company’s operations in the to-be-reported quarter.
Dismal contributions from The Base Business and the Excluded are likely to get reflected in the second-quarter top line. The Zacks Consensus Estimate for second-quarter Base Business revenues is pegged at $1,809 million, indicating a decline of 7.9% year over year. The consensus mark for Excluded revenues is pegged at $29.8 compared with $91.8 million reported in the prior-year quarter.
Inflationary cost increases in areas of facilities, freight, insurance, IT, advertising and marketing are likely to have flared up expenses in the to-be-reported quarter. Per our model, operating expenses (in base business) is expected to increase 8.9% (year over year) in the second quarter.
Strength in renovation and remodelling activities coupled with the emphasis on Porpoise Pool & Patio acquisition, supply chain initiatives, capacity creation efforts and pricing management are likely to have aided the company’s performance in the to-be-reported 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 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 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:
MGM Resorts International (MGM - Free Report) has an Earnings ESP of +38.00% and a Zacks Rank #3.
Shares of MGM Resorts have increased 11.7% in the past three months. MGM’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 81%.
Penn National Gaming, Inc. (PENN - Free Report) has an Earnings ESP of +13.44% and a Zacks Rank #3.
Shares of Penn National have declined 4.8% in the past three months. PENN’s earnings beat estimates in one of the trailing four quarters and missed thrice, the average negative surprise being 15%.
Hasbro, Inc. (HAS - Free Report) has an Earnings ESP of +16.67% and a Zacks Rank #3.
Shares of Hasbro have increased 23.1% in the past three months. HAS’ earnings beat estimates in two of the trailing four quarters and missed twice, the average negative surprise being 12.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.