Here's What Analysts Are Forecasting For Pool Corporation After Its Yearly Results
Last week, you might have seen that Pool Corporation (NASDAQ:POOL) released its full-year result to the market. The early response was not positive, with shares down 5.8% to US$211 in the past week. Pool reported in line with analyst predictions, delivering revenues of US$3.2b and statutory earnings per share of US$6.40, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Pool
Following the latest results, Pool's nine analysts are now forecasting revenues of US$3.42b in 2020. This would be a satisfactory 6.9% improvement in sales compared to the last 12 months. Statutory per-share earnings are expected to be US$6.62, roughly flat on the last 12 months. Yet prior to the latest earnings, analysts had been forecasting revenues of US$3.42b and earnings per share (EPS) of US$6.71 in 2020. So it's pretty clear that, although analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$228. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Pool at US$245 per share, while the most bearish prices it at US$213. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.
Zooming out to look at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up both against past performance, and against industry growth estimates. Next year brings more of the same, according to analysts, with revenue forecast to grow 6.9%, in line with its 7.3% annual growth over the past five years. Compare this with the wider market, which analyst estimates (in aggregate) suggest will see revenues grow 2.8% next year. So it's pretty clear that Pool is forecast to grow substantially faster than its market.
The Bottom Line
The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. The consensus price target held steady at US$228, with the latest estimates not enough to have an impact on analysts' estimated valuations.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have forecasts for Pool going out to 2024, and you can see them free on our platform here.
It might also be worth considering whether Pool's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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