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Pool Corp (POOL) To Report Q4 Earnings: What's In Store?

ByZacks Investment Research
Published 02/11/2020, 09:44 PM
Updated 07/09/2023, 06:31 AM

Pool Corporation (NASDAQ:POOL) is scheduled to report fourth-quarter 2019 results on Feb 13, before the opening bell. In the last reported quarter, the company’s earnings outpaced the Zacks Consensus Estimate by 4%.

Q4 Expectations

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 35 cents, lower than 41 cents reported in the year-ago quarter. Notably, the company’s earnings estimates have been stable in the past 30 days. In third-quarter 2019, it witnessed earnings growth of 16% on a year-over-year basis.

For revenues, the consensus mark stands is pegged at nearly $572.7 million. The projected figure indicates a rise of 5.4% from the prior-year quarter’s figure.

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

Factors at Play

Robust base business in the markets like California, Texas, Florida and Arizona are likely to get reflected in Pool’s fourth-quarter 2019 performance. Strong swimming product sales in the fourth-quarter is likely to have driven the company’s top line. Furthermore, company is expected to have benefited from increase in market share from regional pool and irrigation distributors. Given that the pool business impressed investors with robust revenue growth in the preceding quarters, the trend is likely to have continued in the to-be-reported quarter.

However, negative currency translation is likely to have impacted the company’s bottom line in the quarter to be reported. Moreover, higher labor and delivery costs as well as investments in information technology systems and hardware are likely to have contributed to rising expenses in the quarter to be reported. Also, presence of unfavorable weather conditions is likely to be a headwind.

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Pool Corporation Price and EPS Surprise

Pool Corporation price-eps-surprise | Pool Corporation Quote

What Does the Zacks Model Say?

Our proven model does not conclusively 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 0.00%. 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 #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stock With Favorable Combinations

Here are some companies in the Zacks Consumer Discretionary sector that investors may consider as our model shows that these have the right combination of elements to post earnings beat in the fourth quarter:

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) has an Earnings ESP of +0.41% and a Zacks Rank #3.

Boyd Gaming Corporation (NYSE:BYD) has an Earnings ESP of +2.13% and a Zacks Rank #3.

Melco Resorts & Entertainment Limited (NASDAQ:MLCO) has an Earnings ESP of +11.34% and a Zacks Rank #3.

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Pool Corporation (POOL): Free Stock Analysis Report

Boyd Gaming Corporation (BYD): Free Stock Analysis Report

Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report

Melco Resorts & Entertainment Limited (MLCO): Free Stock Analysis Report

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Zacks Investment Research

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