On 17 February, Pool Corp. (POOL) reported fourth quarter fiscal 2010 loss of 24 cents per share, which was in line with the Zacks consensus estimate. However, the loss for the quarter compared favorably last year loss of 28 cents. The loss is reduced due to the small top line growth with efficient cost management. For the 2010 fiscal earnings were $ 1.17 versus 39 cents recorded in 2009.
Below is our report on the recent announcement of earnings as well as subsequent revisions Analyst estimates on periods of short and long term.
Earnings report Flashback
The company reported an increase of 4.5% year-over-year net sales to reach 241.4 million during the quarter, inching past Zacks consensus estimate of 240.0 million. For the 2010 tax, net sales increased to $ 1.61 billion (5%).
(Read our full coverage on this report earnings: Pool reports online)
Earnings estimate revisions — overview
Following the publication of results for the fourth quarter of Pool Corp., trends of revision of estimates among analysts featuring a mixture of outlook. Dig the earnings we say prediction details.
Agreement of estimate revisions
In the last 7 days, a positive trend was noted for the first quarter of 2011, with estimates of profits having risen by analysts of 4 to 9. On the other hand, nobody moved down.
Analysts expect the gross margin to expand modestly with the larger piece from the first quarter of 2011 because of easy comparison, partially offset by the dramatic decline of temperature in early 2011.
On a positive note for the 2011 fiscal analyst of three of the nine going to increase revenue and cut two the same. Analysts impressed with Pool capacity gain market share. In fact, management expects its business struggling to turn green in 2011.
However, analysts ' outlook remained muted compared to the second quarter of 2011 with analysts of one of the nine increasing estimation and three by reducing the same.
Magnitude of revisions of estimates
The magnitude of revisions of estimates for the pool was moderate in the last 7 days. Following the publication of results for the fourth quarter, estimated for the first quarter of 2011 was raised by a penny. The estimate for the second quarter of 2011 has been cut by a penny, while the estimate for 2011 tax has remained the same.
Currently, the Zacks consensus estimate for the first quarter loss of 8 cents per share, for the second quarter was $ 1.12 per diluted share. For 2011, the Zacks consensus estimate is revenue of $ 1.32 per diluted share.
Our recommendation
Pool is a recognized leader in the field. The potential for market growth is also significant. The company remains committed to return value to shareholders through share buy back and dividend payment.
However, we believe, is not yet totally immune to the challenges. Macroeconomic factors as depressed appraisal Trotsky probable replacement, renovation and new construction companies that continue to defy the sales growth in the short term.
Pool conserves a Zacks rank # 3, which results in a short-term ratings Hold. In addition, we are maintaining our neutral recommendation for the stock long-term. The peer group of companies includes Arctic Cat Inc. (ACAT) and Sturm, Ruger & Co. Inc. (RGR "> RGR).
Earnings estimate Scorecard
Len Zacks, PhD in mathematics from MIT, was more than 30 years ago that earnings estimate revisions are the most powerful force impacting stock prices. Has transformed this discovery ground breaking in two classification systems more celebrate stock in use today. The Zacks rank for stocks trading in a horizon of 1 to 3 months and the Zacks recommendation for long term investing (6 + months). These "earnings estimate Scorecard articles help you analyze the important aspects of revisions of estimates for each stock after their quarterly earnings announcements. More information on estimates of earnings and our stock assessments try http://www.zacks.com/education/
ARCTIC CAT INC (ACAT): Report of Free Stock Analysis
POOL CORP (POOL): Report of Free Stock Analysis
STURM RUGER & CO. (RGR): Report of Free Stock Analysis
Zacks Investment Research
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