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Pool Corp (POOL) to Report Q3 Earnings: What's in the Cards?

Pool Corporation POOL is scheduled to report third-quarter 2021 results on Oct 21, before market open. In the last reported quarter, the company delivered an earnings surprise of 18.6%.

How are Estimates Faring?

The Zacks Consensus Estimate for third-quarter earnings is pegged at $3.87, which indicates growth of 42.8% from $2.71 registered in the year-ago quarter.

For revenues, the consensus mark is pegged at nearly $1,368 million that suggests an increase of 20.1% from the prior-year quarter’s figure.

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

Factors at Play

Pool Corp’s third-quarter performance is likely to have benefitted from higher demand, solid single family housing market, continuation of de-urbanization trends as well as strengthening of the southern migration. Given the population growth in the Sunbelt states and the rapid adoption of the work-from-home trend, more optimism can be witnessed as people are willing to invest in pool, patio, outdoor kitchen or remodel projects. To this end, focus on new user-friendly products — such as automation and the connected pool — is likely to have generated additional revenues in the third quarter.

Emphasis on backlogs, pool construction activities, capacity-creation initiatives, elevated demand for maintenance and repair products, expansion efforts as well as variable speed pump legislation is likely to have driven the company’s third-quarter top line.

However, rising labor and delivery costs as well as investments in information technology systems and hardware are likely to have flared up expenses in the third quarter. This along with the pandemic-induced supply and carrier constraints is likely to have hurt performance 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 earnings. 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 #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Golden Entertainment, Inc. GDEN sports a Zacks Rank #1 and has an Earnings ESP of +51.95%.

Boyd Gaming Corporation BYD has a Zacks Rank #2 and an Earnings ESP of +2.17%.

Accel Entertainment, Inc. ACEL has a Zacks Rank #2 and an Earnings ESP of +20%.

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Pool Corporation (POOL): Free Stock Analysis Report
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Golden Entertainment, Inc. (GDEN): Free Stock Analysis Report
Accel Entertainment, Inc. (ACEL): Free Stock Analysis Report
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