A Glimpse of Pool's Earnings Potential

Pool POOL is set to give its latest quarterly earnings report on Thursday, 2024-10-24. Here's what investors need to know before the announcement.

Analysts estimate that Pool will report an earnings per share (EPS) of $3.17.

The market awaits Pool's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Overview of Past Earnings

The company's EPS beat by $0.09 in the last quarter, leading to a 3.3% increase in the share price on the following day.

Here's a look at Pool's past performance and the resulting price change:

Tracking Pool's Stock Performance

Shares of Pool were trading at $350.78 as of October 22. Over the last 52-week period, shares are up 10.84%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about Pool

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Pool.

Analysts have given Pool a total of 7 ratings, with the consensus rating being Neutral. The average one-year price target is $373.57, indicating a potential 6.5% upside.

Understanding Analyst Ratings Among Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Genuine Parts, LKQ and GigaCloud Tech, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Neutral trajectory for Genuine Parts, with an average 1-year price target of $139.56, indicating a potential 60.21% downside.
• The consensus among analysts is an Outperform trajectory for LKQ, with an average 1-year price target of $58.43, indicating a potential 83.34% downside.
• Analysts currently favor an Buy trajectory for GigaCloud Tech, with an average 1-year price target of $50.0, suggesting a potential 85.75% downside.

Key Findings: Peer Analysis Summary

In the peer analysis summary, key metrics for Genuine Parts, LKQ and GigaCloud Tech are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Pool is positioned in the middle among its peers for revenue growth, with a slight decline. It ranks at the top for gross profit, indicating strong operational efficiency. However, its return on equity is lower compared to peers, suggesting potential for improvement in generating profits relative to shareholder equity.

All You Need to Know About Pool

Pool Corp distributes swimming pool supplies and related products. It sells national-brand and private-label products to approximately 120000 customers. The products include non-discretionary pool-maintenance products, like chemicals and replacement parts, as well as pool equipment, like packaged pools (kits to build swimming pools), cleaners, filters, heaters, pumps, and lights. Customers include pool builders and remodelers, independent retail stores, and pool repair and service companies.

Financial Milestones: Pool's Journey

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Decline in Revenue: Over the 3 months period, Pool faced challenges, resulting in a decline of approximately -4.72% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Pool's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 10.82% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Pool's ROE excels beyond industry benchmarks, reaching 13.82%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Pool's ROA excels beyond industry benchmarks, reaching 5.17%. This signifies efficient management of assets and strong financial health.

Debt Management: Pool's debt-to-equity ratio stands notably higher than the industry average, reaching 1.01. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Pool visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.