Pool products retailer Leslie’s (NASDAQ:LESL) will be announcing earnings results tomorrow afternoon. Here’s what to look for.

Leslie's beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $175.2 million, flat year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA estimates.

Is Leslie's a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Leslie’s revenue to decline 2.2% year on year to $184.5 million, improving from the 11.4% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.24 per share.Leslie's Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Leslie's has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Leslie’s peers in the consumer retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Tractor Supply delivered year-on-year revenue growth of 2.1%, missing analysts’ expectations by 1.9%, and Walgreens reported revenues up 4.1%, topping estimates by 2.2%. Tractor Supply traded down 1.5% following the results while Walgreens’s stock price was unchanged.

Read our full analysis of Tractor Supply’s results here and Walgreens’s results here.

There has been positive sentiment among investors in the consumer retail segment, with share prices up 11% on average over the last month. Leslie's is up 15.8% during the same time and is heading into earnings with an average analyst price target of $2.12 (compared to the current share price of $0.68).

Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

View Comments