Swimming pool distributor Pool (NASDAQ:POOL) will be reporting results this Thursday before the bell. Here’s what you need to know.
Pool missed analysts’ revenue expectations last quarter, reporting revenues of $982.2 million, flat year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates.
Is Pool a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Pool’s revenue to grow 2.4% year on year, a reversal from the 4.4% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Pool has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Pool’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Monarch delivered year-on-year revenue growth of 8.9%, beating analysts’ expectations by 5.2%, and Levi's reported revenues up 14.1%, topping estimates by 5.6%. Levi's traded up 10.7% following the results.
Read our full analysis of Monarch’s results here and Levi’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 11.3% on average over the last month. Pool is up 13.6% during the same time and is heading into earnings with an average analyst price target of $262.64 (compared to the current share price of $233.14).
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