Swimming pool distributor Pool (NASDAQ:POOL) will be reporting results tomorrow morning. Here's what to look for.

Last quarter Pool reported revenues of $1.00 billion, down 8.5% year on year, missing analyst expectations by 1.6%. It was a weaker quarter for the company, with a miss of analysts' revenue estimates. In addition, its full-year earnings forecast was underwhelming.

Is Pool buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Pool's revenue to decline 6.4% year on year to $1.13 billion, improvement on the 14.6% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.93 per share.

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates five times over the last two years.

Looking at Pool's peers in the consumer discretionary segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. LKQ delivered top-line growth of 10.6% year on year, missing analyst estimates by 1.6%. LKQ traded flat on the results.

Read our full analysis of LKQ's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share price declining 4.1% over the last month. Pool is down 6.8% during the same time, and is heading into the earnings with analyst price target of $396.2, compared to share price of $375.01.

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