Leslie’s (LESL) Reports Q3 Results Tomorrow

Pool products retailer Leslie’s (NASDAQ:LESL) will be announcing earnings results this Tuesday after market hours. Here’s what to look for.

Leslie’s missed analysts’ revenue expectations by 4.7% last quarter, reporting revenues of $500.3 million, down 12.2% year on year. It was a softer quarter for the company, with full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue 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, analysts are expecting Leslie’s revenue to decline 6.1% year on year to $373.5 million, improving from the 8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.30 per share.

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 specialty retail segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Petco’s revenues decreased 3.1% year on year, meeting analysts’ expectations, and National Vision reported revenues up 7.9%, topping estimates by 3%. Petco traded up 14.5% following the results while National Vision was down 8.3%.

Read our full analysis of Petco’s results here and National Vision’s results here.

There has been positive sentiment among investors in the specialty retail segment, with share prices up 4% on average over the last month. Leslie’s is down 14.2% during the same time and is heading into earnings with an average analyst price target of $9.34 (compared to the current share price of $2.97).

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