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Robust Base Business to Drive Pool Corp's (POOL) Q3 Earnings

Zacks Equity Research

Pool Corporation POOL is scheduled to report third-quarter 2019 results on Oct 17, before the opening bell. In the last reported quarter, the company’s earnings outpaced the Zacks Consensus Estimate by 0.3%.

Q3 Expectations

The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.77, higher than $1.66 reported in the year-ago quarter. Notably, the company’s earnings estimates have been stable over the past 30 days. In second-quarter 2019, it witnessed earnings growth of 15% on a year-over-year basis.

For revenues, the consensus mark stands at nearly $887.3 million, indicating an improvement of 9.4% from the prior-year quarter.

Let’s delve deeper and analyze the factors influencing the company 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 third-quarter 2019 results. Strong swimming product sales in the third-quarter is likely to have driven the company’s top line. Furthermore, the company’s Green business impressed investors in the preceding quarters, the trend is likely to have continued in the to-be-reported quarter.

However, increased expenses are likely to have impacted the company in the third quarter. Higher labor and delivery costs, and investments in information technology systems and hardware are likely to have contributed to rising expenses in the quarter to be reported.


Pool Corporation Price and EPS Surprise


Pool Corporation Price and EPS Surprise

Pool Corporation price-eps-surprise | Pool Corporation Quote

What Does the Zacks Model Unveil?

Our proven model does not conclusively show a beat for Pool this earnings season. The odds of a beat increase with a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Pool has an Earnings ESP of 0.00% and a Zacks Rank #2, which make surprise prediction difficult.

Stock With Favorable Combinations

Here are a few stocks from the Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post earnings beat in the third quarter:

Hasbro, Inc. HAS has an Earnings ESP of +1.44% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Monarch Casino & Resort, Inc. MCRI has an Earnings ESP of +6.45% and a Zacks Rank #2.

Carter's, Inc. CRI has an Earnings ESP of +0.83% and a Zacks Rank #3.

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Monarch Casino & Resort, Inc. (MCRI) : Free Stock Analysis Report
Pool Corporation (POOL) : Free Stock Analysis Report
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Hasbro, Inc. (HAS) : Free Stock Analysis Report
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