Louisiana-based swimming pool and lifestyle product maker
) is set to report its first-quarter 2014 results on Apr 17,
2014, before the opening bell.
In the last quarter, it posted in line earnings, primarily driven
by higher-than-expected sales. Let's see how things are shaping
up for the upcoming announcement.
Factors to Consider this Quarter
Even though Pool Corp. has been affected for quite some time now
due to sluggish economic conditions and the stagnant U.S.
swimming pool construction market, it is seeing improving product
demand with the housing market recovery. With the U.S. swimming
pool market gradually emerging out of the recessionary lows,
Pool's share price increased almost 24% in the past year.
However, we are concerned about the seasonality of the company's
business. Pool Corp.'s business in the U.S. is expected to be
impacted by inclement weather experienced in most regions of the
country in January and the beginning of February.
Our proven model does not conclusively show that Pool is likely
to beat earnings this quarter. That is because a stock needs to
have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here, as you will see below.
Zacks ESP: The Earnings ESP for Pool is 0.00%. This is because
both the Most Accurate estimate and the Zacks Consensus Estimate
are pegged at 11 cents.
Zacks Rank: Pool has a Zacks Rank #3 (Hold), which when combined
with a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies in the broader consumer
discretionary sector that investors may consider, as our model
shows that they have the right combination of elements to post an
earnings beat this quarter:
Chipotle Mexican Grill, Inc.
), with an Earnings ESP of +1.06% and a Zacks Rank #2 (Buy).
MGM Resorts International
), with an Earnings ESP of +30.00% and a Zacks Rank #2.
Las Vegas Sands Corp.
), with an Earnings ESP of +1.09% and a Zacks Rank #2.
CHIPOTLE MEXICN (CMG): Free Stock Analysis
LAS VEGAS SANDS (LVS): Free Stock Analysis
MGM RESORTS INT (MGM): Free Stock Analysis
POOL CORP (POOL): Free Stock Analysis Report
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