Pool products retailer Leslie’s (NASDAQ: LESL) will be announcing earnings results this Wednesday after market hours. Here’s what investors should know.
Leslie's beat analysts’ revenue expectations last quarter, reporting revenues of $184.7 million, up 4.3% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ gross margin estimates and an impressive beat of analysts’ EBITDA estimates.
Is Leslie's a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Leslie’s revenue to grow 4% year on year, a reversal from the 12.2% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Leslie's has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Leslie’s peers in the consumer retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Tractor Supply delivered year-on-year revenue growth of 2.3%, missing analysts’ expectations by 1.1%, and Penske Automotive Group reported revenues up 11.1%, topping estimates by 6.5%. Tractor Supply traded up 5.7% following the results while Penske Automotive Group’s stock price was unchanged.
Read our full analysis of Tractor Supply’s results here and Penske Automotive Group’s results here.
There has been positive sentiment among investors in the consumer retail segment, with share prices up 6.3% on average over the last month. Leslie's is down 79.6% during the same time and is heading into earnings with an average analyst price target of $2.70 (compared to the current share price of $1.15).
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