Pool Corporation (POOL Quick QuotePOOL - Free Report) is scheduled to report third-quarter 2024 results on Oct. 24, before market open. In the last reported quarter, the company delivered an earnings surprise of 1.63%.

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Q3 Estimates

The Zacks Consensus Estimate for earnings is pegged at $3.15 per share, which indicates a decline of 10% from $3.50 registered in the year-ago quarter.

For revenues, the Zacks Consensus Estimate is pegged at $1.41 billion, suggesting a decline of 4.7% from the prior-year quarter’s figure.

Let us analyze the factors that are likely to have made an impact this earnings season.

Factors at Play

Pool Corp’s third-quarter results are likely to be negatively impacted by lower sales volume courtesy of reduced pool construction and deferred discretionary replacement activities. This and the continuation of economic uncertainty put more pressure on new pool starts. The challenging economic environment in Europe is expected to continue being a drag on the company’s international sales. On the other hand, the decline in renovations is likely to have hurt the top line in third-quarter 2024.

Pool Corp has been witnessing increased expenses lately. Inflationary cost increases in facilities, freight, insurance, IT, advertising and marketing are likely to have driven the expenses. Cost inflation, particularly in base wages, healthcare costs and rent and facility costs are likely to have increased expenses. The company has been seeing deflationary pressure on chemicals, with prices for key chemical products, particularly trichlor, continuing to fall. This is likely to have hurt margins and revenues in the chemicals segment.

POOL’s commitment to digital innovation, including the POOL360 water test tool, allows the company to differentiate itself in a competitive market. This initiative not only drives operational improvements but also provides a better customer experience that helps dealers manage their businesses more effectively. The company’s POOL360 effort is likely to have aided its performance in third-quarter 2024.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Pool this time around. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Pool currently has an Earnings ESP of -3.23% and a Zacks Rank #3.

Stocks Poised to Beat Earnings

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this season.

Choice Hotels International, Inc. (CHH Quick QuoteCHH - Free Report) has an Earnings ESP of +1.14% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

CHH is expected to have registered a 5% increase year over year in earnings for the to-be-reported quarter. It reported better-than-expected earnings in two of the trailing four quarters and missed twice, the average surprise being 3.4%.

Las Vegas Sands Corp. (LVS Quick QuoteLVS - Free Report) currently has an Earnings ESP of +0.70% and a Zacks Rank of 2.

LVS’ earnings for the to-be-reported quarter are expected to have increased 1.8% year over year. It reported better-than-expected earnings in two of the trailing four quarters and missed twice, the average surprise being 2.1%.

Marriott International, Inc. (MAR Quick QuoteMAR - Free Report) currently has an Earnings ESP of +1.57% and a Zacks Rank of 3.

MAR’s earnings for the to-be-reported quarter are expected to have increased 9.5% year over year. It reported better-than-expected earnings in three of the trailing four quarters and missed once, the average surprise being 16.9%.