Swimming pool distributor Pool (NASDAQ: POOL) will be reporting earnings tomorrow before market hours. Here’s what to look for.
Pool beat analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $1.43 billion, down 2.8% 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 3.8% year on year to $964.7 million, improving from the 8.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.89 per share.
Analysts covering the company have generally 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 specialized consumer services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Service International delivered year-on-year revenue growth of 3.5%, beating analysts’ expectations by 0.8%, and H&R Block reported flat revenue, topping estimates by 1.4%. Service International traded up 7.3% following the results while H&R Block’s stock price was unchanged.
Read our full analysis of Service International’s results here and H&R Block’s results here.
Investors in the specialized consumer services segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. Pool is down 5% during the same time and is heading into earnings with an average analyst price target of $377.40 (compared to the current share price of $344).
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