Pool Corporation POOL is scheduled to report second-quarter 2022 results on Jul 21, before market open. In the last reported quarter, the company delivered an earnings surprise of 44.1%.
How are Estimates Faring?
The Zacks Consensus Estimate for second-quarter earnings is pegged at $7.40, which indicates growth of 16.2% from $6.37 registered in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $2,127 million, suggesting an increase of 19% from the prior-year quarter’s figure.
Pool Corporation Price and EPS Surprise
Pool Corporation price-eps-surprise | Pool Corporation Quote
Let’s analyze the factors that will likely make an impact this earnings season.
Factors at Play
Pool Corp’s second-quarter top-line is likely to have benefitted from elevated demand for maintenance and repair products, new pool construction backlogs, the continuation of de-urbanization trends and strengthening of the southern migration. This and the focus on Porpoise Pool & Patio acquisition, supply chain initiatives and pricing management are likely to have driven the company’s performance in the to-be-reported quarter.
The addition of Pinch A Penny is likely to have boosted the company’s presence in the DIY market segment. During the previous quarter, Pinch A Penny added two new franchise locations and stated to have initiated work on chemical sourcing and product management. Also, it reported brisk store traffic and solid demand across the platform. Given the acquisition synergies and robust development pipeline, the momentum is likely to have persisted in the second quarter.
However, rising labor and freight costs and investments in digital transformation initiatives and expansion of the sales center network are likely to have flared up expenses in the second quarter. This and logistical slowdowns in Southern Europe are likely to have affected the company’s operations 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 estimates. 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 #4 (Sell).
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat:
MGM Resorts International MGM has an Earnings ESP of +60.20% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of MGM Resorts have declined 25% in the past year. MGM’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 212.5%.
Marriott International, Inc. MAR has an Earnings ESP of +10.12% and a Zacks Rank #3.
Shares of Marriott have increased 4.3% in the past year. MAR’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 36.2%.
Hilton Worldwide Holdings Inc. HLT has an Earnings ESP of +13.39% and a Zacks Rank #3.
Shares of Hilton have declined 5.4% in the past year. HLT’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 20.5%.
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