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

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Zacks Equity Research
·3 min read
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Pool Corporation POOL is scheduled to report first-quarter 2021 results on Apr 22, before market open. In the last reported quarter, the company delivered earnings surprise of 88.3%. Further, the company has a trailing four-quarter earnings surprise of 37.4%, on average.

How Are Estimates Faring?

The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.20, which indicates growth of 69% from 71 cents registered in the year-ago quarter.

For revenues, the consensus mark is pegged at nearly $821.1 million that suggests increase of 21.2% 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

Pool Corporation Price and EPS Surprise
Pool Corporation Price and EPS Surprise

Pool Corporation price-eps-surprise | Pool Corporation Quote

Factors at Play

Pool Corp’s first-quarter top line is likely to have been driven by solid backlogs, new pool construction activities, capacity-creation initiatives, elevated demand for pool supplies and maintenance products. Notably, the company is likely to have benefitted from COVID trends stemming from work-from-home, school-from-home, lack of vacation travel and the de-urbanization trends. Also, contributions from its acquired Master Tile, Northeastern Swimming Pool Distributors, Jet Line Products and TWC Distributors businesses are likely to have boosted revenues in the to-be-reported quarter.

However, new hirings coupled with a rise in labor and delivery costs are likely to have flared up expenses in the first quarter. This along with the pandemic-induced supply and carrier constraints is likely to have hurt performance in the to-be-reported quarter.

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 earnings. But that's 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 #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:

Boyd Gaming Corporation BYD has a Zacks Rank #3 and an Earnings ESP of +7.42%.

Choice Hotels International, Inc. CHH has a Zacks Rank #3 and an Earnings ESP of +2.75%.

Caesars Entertainment, Inc. CZR has a Zacks Rank #3 and an Earnings ESP of +9.32%.

Zacks Top 10 Stocks for 2021

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Choice Hotels International, Inc. (CHH) : Free Stock Analysis Report

Pool Corporation (POOL) : Free Stock Analysis Report

Caesars Entertainment, Inc. (CZR) : Free Stock Analysis Report

Boyd Gaming Corporation (BYD) : Free Stock Analysis Report

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Zacks Investment Research