Swimming pool distributor Pool (NASDAQ:POOL) will be reporting results tomorrow before the bell. Here’s what to expect.
Pool beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $1.77 billion, down 4.7% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ organic revenue estimates.
Is Pool a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Pool’s revenue to decline 4.8% year on year to $1.40 billion, improving from the 8.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.18 per share.
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 five times over the last two years.
Looking at Pool’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Nike’s revenues decreased 10.4% year on year, meeting analysts’ expectations, and Scholastic reported revenues up 3.8%, topping estimates by 1.6%. Nike traded down 6.8% following the results while Scholastic was up 6%.
Read our full analysis of Nike’s results here and Scholastic’s results here.
Investors in the consumer discretionary segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Pool is down 5.7% during the same time and is heading into earnings with an average analyst price target of $367.60 (compared to the current share price of $350.78).
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