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In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate by 1.6% but the revenues missed the mark by 1.5%.
How Are Estimates Faring?
The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $1.86, indicating a deterioration of 24.4% from $2.46 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $1.13 billion. The metric suggests a decline of 6.2% from the year-ago quarter’s reported figure.
Let’s discuss the factors that are likely to have influenced the to-be-reported quarter’s results.
Factors at Play
Pool Corp’s first-quarter 2024 performance is likely to have been impacted by softer new pool construction activity due to higher interest rates and macroeconomic risks. Moreover, slower maintenance activity, unfavorable weather scenario and lower volumes of discretionary pool products sold due to discretionary replacement activity are likely to have impacted the top line on a year-over-year basis.
Nonetheless, POOL’s organic and inorganic expansion initiatives along with product portfolio diversification are likely to have partially offset the aforementioned headwinds in the to-be-reported quarter. Its focus on innovation, execution and collaborative partnerships is encouraging.
Inflationary wage increases, rent and facility costs and insurance and healthcare-related costs are likely to have flared up expenses in the to-be-reported quarter. Our model predicts selling and administrative expenses to be up 5.7% to $236.8 million during the quarter year over year.
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 is 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 #4 (Sell).
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Consumer Discretionary sector, which according to our model, have the right combination of elements to post an earnings beat:
MGM is expected to register a 34.1% increase in earnings for the to-be-reported quarter. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 271.5%.
DraftKings Inc. (DKNG - Free Report) currently has an Earnings ESP of +36.22% and a Zacks Rank of 3.
DKNG’s earnings for the to-be-reported quarter are expected to increase 67.8%. It reported better-than-expected earnings in two of the trailing four quarters and missed on the other two occasions, the average surprise being negative 57.1%.
AMC Entertainment Holdings, Inc. (AMC - Free Report) presently has an Earnings ESP of +25.70% and a Zacks Rank of 3.
AMC’s earnings for the to-be-reported quarter are expected to increase 37.7%. It reported better-than-expected earnings in the trailing four quarters, the average surprise being 50.4%.
Image: Bigstock
Pool Corp (POOL) to Report Q1 Earnings: Here's What to Expect
Pool Corporation (POOL - Free Report) is scheduled to report first-quarter 2024 results on Apr 25, before market open.
In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate by 1.6% but the revenues missed the mark by 1.5%.
How Are Estimates Faring?
The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $1.86, indicating a deterioration of 24.4% from $2.46 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $1.13 billion. The metric suggests a decline of 6.2% from the year-ago quarter’s reported figure.
Pool Corporation Price and EPS Surprise
Pool Corporation price-eps-surprise | Pool Corporation Quote
Let’s discuss the factors that are likely to have influenced the to-be-reported quarter’s results.
Factors at Play
Pool Corp’s first-quarter 2024 performance is likely to have been impacted by softer new pool construction activity due to higher interest rates and macroeconomic risks. Moreover, slower maintenance activity, unfavorable weather scenario and lower volumes of discretionary pool products sold due to discretionary replacement activity are likely to have impacted the top line on a year-over-year basis.
Nonetheless, POOL’s organic and inorganic expansion initiatives along with product portfolio diversification are likely to have partially offset the aforementioned headwinds in the to-be-reported quarter. Its focus on innovation, execution and collaborative partnerships is encouraging.
Inflationary wage increases, rent and facility costs and insurance and healthcare-related costs are likely to have flared up expenses in the to-be-reported quarter. Our model predicts selling and administrative expenses to be up 5.7% to $236.8 million during the quarter year over year.
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 is 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 #4 (Sell).
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Consumer Discretionary sector, which according to our model, have the right combination of elements to post an earnings beat:
MGM Resorts International (MGM - Free Report) has an Earnings ESP of +37.96% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
MGM is expected to register a 34.1% increase in earnings for the to-be-reported quarter. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 271.5%.
DraftKings Inc. (DKNG - Free Report) currently has an Earnings ESP of +36.22% and a Zacks Rank of 3.
DKNG’s earnings for the to-be-reported quarter are expected to increase 67.8%. It reported better-than-expected earnings in two of the trailing four quarters and missed on the other two occasions, the average surprise being negative 57.1%.
AMC Entertainment Holdings, Inc. (AMC - Free Report) presently has an Earnings ESP of +25.70% and a Zacks Rank of 3.
AMC’s earnings for the to-be-reported quarter are expected to increase 37.7%. It reported better-than-expected earnings in the trailing four quarters, the average surprise being 50.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.