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Factors Setting the Tone for Pool Corp's (POOL) Q3 Earnings
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Pool Corporation (POOL - Free Report) is scheduled to report third-quarter 2023 results on Oct 19, before market open. In the last reported quarter, the company reported a negative earnings surprise of 2%.
How are Estimates Faring?
The Zacks Consensus Estimate for third-quarter earnings per share (EPS) is pegged at $3.41, indicating a deterioration of 28.4% from $4.76 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $1.5 billion. The metric suggests a decline of 10.4% from the year-ago quarter’s figure.
Let’s discuss the factors that are likely to be reflected in the quarter to be reported.
Factors at Play
Pool Corp’s third-quarter performance is likely to have been impacted by softer new pool construction activity due to higher interest rates and uncertain macroeconomic conditions. This and deferrals in discretionary purchases, including heaters and high-end cleaners, will likely affect the company’s operations in the to-be-reported quarter.
Dismal contributions from The Base Business and the Excluded will likely be reflected in the third-quarter top line. Per our model, third-quarter Base Business revenues are pegged at $1,428.7 million, indicating a decline of 8% year over year. Excluded revenues during the quarter are anticipated to be $20.4, indicating a fall of 67.7% year over year.
Inflationary cost increases in areas of commodities, wages and chemicals are likely to have flared up expenses in the to-be-reported quarter.
Strength in renovation and remodeling activities coupled with the emphasis on strategic acquisitions, new locations, expanded product line offerings 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 -1.76%. 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:
Caesars Entertainment, Inc. (CZR - Free Report) has an Earnings ESP of +18.11% and a Zacks Rank #2.
Shares of Caesars Entertainment have increased 24.5% in the past year. CZR’s earnings surpassed the consensus mark in all the trailing four quarters, the average surprise being 74.3%.
Marriott International, Inc. (MAR - Free Report) has an Earnings ESP of +1.59% and a Zacks Rank #3.
Shares of Marriott have gained 37.8% in the past year. MAR’s earnings surpassed the consensus mark in all the trailing four quarters, the average surprise being 5.5%.
Boyd Gaming Corporation (BYD - Free Report) has an Earnings ESP of +2.50% and a Zacks Rank #3.
Shares of Boyd Gaming have gained 18% in the past year. BYD’s earnings surpassed the consensus mark in all the trailing four quarters, the average surprise being 12.2%.
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Factors Setting the Tone for Pool Corp's (POOL) Q3 Earnings
Pool Corporation (POOL - Free Report) is scheduled to report third-quarter 2023 results on Oct 19, before market open. In the last reported quarter, the company reported a negative earnings surprise of 2%.
How are Estimates Faring?
The Zacks Consensus Estimate for third-quarter earnings per share (EPS) is pegged at $3.41, indicating a deterioration of 28.4% from $4.76 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $1.5 billion. The metric suggests a decline of 10.4% 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 be reflected in the quarter to be reported.
Factors at Play
Pool Corp’s third-quarter performance is likely to have been impacted by softer new pool construction activity due to higher interest rates and uncertain macroeconomic conditions. This and deferrals in discretionary purchases, including heaters and high-end cleaners, will likely affect the company’s operations in the to-be-reported quarter.
Dismal contributions from The Base Business and the Excluded will likely be reflected in the third-quarter top line. Per our model, third-quarter Base Business revenues are pegged at $1,428.7 million, indicating a decline of 8% year over year. Excluded revenues during the quarter are anticipated to be $20.4, indicating a fall of 67.7% year over year.
Inflationary cost increases in areas of commodities, wages and chemicals are likely to have flared up expenses in the to-be-reported quarter.
Strength in renovation and remodeling activities coupled with the emphasis on strategic acquisitions, new locations, expanded product line offerings 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 -1.76%. 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.
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:
Caesars Entertainment, Inc. (CZR - Free Report) has an Earnings ESP of +18.11% and a Zacks Rank #2.
Shares of Caesars Entertainment have increased 24.5% in the past year. CZR’s earnings surpassed the consensus mark in all the trailing four quarters, the average surprise being 74.3%.
Marriott International, Inc. (MAR - Free Report) has an Earnings ESP of +1.59% and a Zacks Rank #3.
Shares of Marriott have gained 37.8% in the past year. MAR’s earnings surpassed the consensus mark in all the trailing four quarters, the average surprise being 5.5%.
Boyd Gaming Corporation (BYD - Free Report) has an Earnings ESP of +2.50% and a Zacks Rank #3.
Shares of Boyd Gaming have gained 18% in the past year. BYD’s earnings surpassed the consensus mark in all the trailing four quarters, the average surprise being 12.2%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.