Earnings To Watch: Pool (POOL) Reports Q2 Results Tomorrow

Swimming pool distributor Pool (NASDAQ:POOL) will be announcing earnings results tomorrow before market hours. Here's what investors should know.

Pool met analysts' revenue expectations last quarter, reporting revenues of $1.12 billion, down 7.1% year on year. It was a decent quarter for the company, with strong earnings guidance for the full year.

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 6.1% year on year to $1.74 billion, improving from the 9.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.90 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 10 downward revisions over the last 30 days. Pool has missed Wall Street's revenue estimates six times over the last two years.

Looking at Pool's peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Carnival delivered year-on-year revenue growth of 17.7%, beating analysts' expectations by 1.9%, and Levi's reported revenues up 7.8%, in line with consensus estimates. Carnival traded up 12% following the results while Levi's was down 15.7%.

Read our full analysis of Carnival's results here and Levi's results here.

There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 9.8% on average over the last month. Pool is up 8.6% during the same time and is heading into earnings with an average analyst price target of $324.1 (compared to the current share price of $337.49).

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