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POOL Gears Up to Report Q4 Earnings: What's in the Cards?

Pool Corporation POOL is scheduled to report fourth-quarter 2022 results on Feb 16, before market open. In the last reported quarter, the company delivered an earnings surprise of 4.6%.

How are Estimates Faring?

The Zacks Consensus Estimate for earnings is pegged at $2.00 per share, which indicates a decline of 13% from $2.30 registered in the year-ago quarter.

For revenues, the Zacks Consensus Estimate is pegged at $1,145 million, suggesting an increase of 10.6% from the prior-year quarter’s figure.

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

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Let’s analyze the factors that are likely to make an impact this earnings season.

Factors at Play

Pool Corp’s fourth-quarter top line is likely to have benefited from non-discretionary maintenance and repair products, continued new pool construction activity and strong renovation and remodel activity. Solid demand for connected and smart technology products like automation, variable speed pumps, robotic cleaners and customizations is likely to have driven the top line.

In fourth-quarter 2022, we expect base business revenues to increase 10.6% year over year to $1,096.2 million. Moreover, solid demand for swimming pool maintenance supplies, above ground pools, spas, automatic pool cleaners, heaters, pumps, lights, chemicals and filters is likely to act as a tailwind.

However, high costs are likely to have affected the company’s margin in the to-be-reported quarter. Notably, increasing inflationary costs in the areas of labor, compensation, healthcare, freight and rent are leading to higher expenses. We expect operating margin to be 9.8% compared with 12.3% reported in the prior-year quarter.

What Our Model Says

Our proven model does not show that Pool is likely to beat earnings estimates this quarter. A stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen, which is not the case here. 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 -2.00% and a Zacks Rank #3.

Stocks With Favorable Combinations

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 this time around.

Red Rock Resorts, Inc. RRR has an Earnings ESP of +0.54% and a Zacks Rank #3.

Shares of Red Rock Resorts have declined 11.3% in the past year. RRR’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 66.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

WW International, Inc. WW has an Earnings ESP of +318.61% and a Zacks Rank #3.

Shares of WW International have decreased 60.7% in the past year. WW’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 22.5%.

Planet Fitness, Inc. PLNT has an Earnings ESP of +2.53% and a Zacks Rank #3.

Shares of Planet Fitness have declined 13.3% in the past year. PLNT’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 6.6%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Pool Corporation (POOL) : Free Stock Analysis Report

Planet Fitness, Inc. (PLNT) : Free Stock Analysis Report

Red Rock Resorts, Inc. (RRR) : Free Stock Analysis Report

WW International, Inc. (WW) : Free Stock Analysis Report

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Zacks Investment Research