Pool Corporation (POOL - Free Report) is scheduled to report third-quarter 2018 financial numbers on Oct 18, before the opening bell. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 1.4%.
The question lingering in investors’ minds now is whether Pool will be able to deliver a positive earnings surprise in the quarter to be reported. The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.57, higher than $1.16 in the year-ago quarter. The company’s earnings estimates have been stable over the past 30 days. In second-quarter 2018, it witnessed earnings growth of 26.7% on a year-over-year basis.
Meanwhile, analysts polled by Zacks expect revenues of nearly $803.6 million, up 8.1% from the prior-year quarter.
Let’s delve deeper to find out how the company’s top and bottom line will shape up this earnings season.
Factors at Play
Pool witnessed 32nd consecutive quarter of year-over-year sales growth in second-quarter 2018. The momentum is likely to continue in the soon-to-be reported quarter. The company’s top-line growth is expected to be driven by robust performance of its base business. Also, favorable trends in the housing market are expected to boost Pool’s performance. The company capitalizes on its large market presence and consumer spending to drive incremental revenues.
Meanwhile, Pool is focused on expansion. It plans to foray into newer geographic locations, expand in existing markets and launch product categories in order to boost its market share.
Over the past five years, the pool has been showing signs of recovery, mostly supported by the gradual improvement in remodeling and replacement activities. Evidently, the company’s existing pool business witnessed revenue growth throughout 2015, 2016 and 2017, primarily aided by higher replacement activities.
Pool Corporation Price, Consensus and EPS Surprise
What Does the Zacks Model Unveil?
Our proven model does not show that Pool is likely to beat earnings estimates this quarter. This is because 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Pool has an Earnings ESP of 0.00%. Although, the company’s Zacks Rank #3 increases the predictive power of ESP, we need to have a positive ESP to be confident about an earnings surprise. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stock With Favorable Combinations
Here are a few other stocks from the Leisure and Recreational space that investors may consider as our model shows that they have the right combination of elements to post an earnings beat in the third quarter:
Callaway Golf Company (ELY - Free Report) has an Earnings ESP of +221.42% and a Zacks Rank of 1.
SeaWorld Entertainment, Inc. (SEAS - Free Report) has an Earnings ESP of +4.05% and a Zacks Rank #1.
Royal Caribbean Cruises Ltd. (RCL - Free Report) has an Earnings ESP of +0.67% and a Zacks Rank #3.
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