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Factors Setting The Tone for Pool Corp (POOL) Q1 Earnings

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Pool Corporation (POOL - Free Report) is scheduled to report first-quarter 2020 results on Apr 23, before market open. In the last reported quarter, the company delivered a positive earnings surprise of 25.7%. Further, the company has a trailing four-quarter positive earnings surprise of 5.9%, on average.

How Are Estimates Faring?

The Zacks Consensus Estimate for the first-quarter earnings is pegged at 65 cents, indicating 10.2% growth from 59 cents registered in the year-ago quarter.

For revenues, the consensus mark stands at nearly $639.5 million, suggesting growth of 7% from the prior-year quarter’s figure.

Let’s analyze the factors that are likely to make an impact this earnings season.

Pool Corporation Price and EPS Surprise

 

Factors at Play

Strong base business along with increase in market share from regional pool and irrigation distributors are likely to get reflected in Pool’s first-quarter 2020 results. Moreover, its foray into new locations along with the launch of innovative product categories is likely to have driven the top line in the quarter.

The base business is likely to have benefited from continuous expansion in commercial and building material products along with healthy demand for construction materials and products used in the remodel and replacement of in-ground pools.

However, higher labor and delivery costs as well as investments in information technology systems and hardware are likely to have driven expenses in the quarter to be reported. 

What Our Model Says

Our proven model does not predict an earnings beat for Pool 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 earnings. This is not the case here, as you will see below.

Earnings ESP: Pool has an Earnings ESP of -0.78%. 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 space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Casa Systems, Inc. (CASA - Free Report) has a Zacks Rank #1 and an Earnings ESP of +24.73%. 

Mattel, Inc. (MAT - Free Report) has a Zacks Rank #2 and an Earnings ESP of +1.66%.

Churchill Downs, Incorporated (CHDN - Free Report) has a Zacks Rank #3 and an Earnings ESP of +112.90%.

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