Pool (NASDAQ:POOL) Posts Earnings Results, Beats Expectations By $0.04 EPS

Pool (NASDAQ:POOL) issued its quarterly earnings data on Thursday. The specialty retailer reported $3.40 earnings per share for the quarter, topping analysts’ consensus estimates of $3.36 by $0.04, Zacks reports. The firm had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.48 billion. Pool had a return on equity of 33.50% and a net margin of 7.27%. The business’s quarterly revenue was up 3.7% compared to the same quarter last year. During the same period last year, the company earned $3.39 EPS.

Here are the key takeaways from Pool’s conference call:

• Third-quarter sales increased 4% to $1.5 billion, driven by pricing, maintenance and building-materials volume, replacement equipment demand, and market-share gains. Pool 360 sales penetration rose to just over 17%, while Europe grew 8% in local currency.
• Management reaffirmed its adjusted diluted EPS guidance of $10.87–$11.17 and raised full-year sales-growth expectations slightly to 3%–4%. October sales were up approximately 2%, with no negative volume trend reported.
• Gross margin fell 60 basis points to 29% as higher inbound freight, customer mix, and difficult comparisons with last year’s mid-season price increases offset sales growth. Fourth-quarter margin is expected to improve sequentially but remain below the prior-year level.
• The housing and discretionary environment remains challenging, with new pool construction expected to finish slightly below last year and housing turnover still subdued. Management does not expect a materially better macro backdrop in 2027 and is emphasizing internal initiatives in sales execution, pricing, supply chain, operations, and M&A.
• Cash generation strengthened materially, with year-to-date operating cash flow up 47% to $420 million and inventory down 3% year over year despite 4% sales growth. The company increased share repurchases during the quarter, retains $468 million of authorization, and ended the quarter within its target leverage range at 1.8 times.

Pool Stock Up 0.9%

Shares of NASDAQ:POOL traded up $1.87 during trading on Friday, hitting $199.08. The stock had a trading volume of 1,385,838 shares, compared to its average volume of 832,566. Pool has a 12 month low of $152.70 and a 12 month high of $301.69. The company has a market capitalization of $7.23 billion, a PE ratio of 18.31, a PEG ratio of 3.02 and a beta of 1.05. The firm’s fifty day moving average is $173.98 and its 200 day moving average is $190.84. The company has a quick ratio of 0.91, a current ratio of 2.46 and a debt-to-equity ratio of 0.93.

Pool Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, August 27th. Stockholders of record on Thursday, August 13th were given a $1.30 dividend. The ex-dividend date of this dividend was Thursday, August 13th. This represents a $5.20 annualized dividend and a dividend yield of 2.6%. Pool’s dividend payout ratio is currently 47.84%.

Pool News Summary

Here are the key news stories impacting Pool this week:

• Positive Sentiment: Third-quarter net sales rose 4% year over year to approximately $1.5 billion, accelerating from 2% growth in the prior quarter. Growth was supported by pricing, solid maintenance demand and improving building-materials sales. Pool Corporation Reports Third Quarter Results
• Positive Sentiment: Adjusted earnings came in at $3.40 per diluted share, ahead of the $3.36 consensus estimate, while revenue also topped expectations of roughly $1.48 billion. Pool reportedly passed higher freight costs on to customers, helping protect margins. Pool Corp. Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Year-to-date operating cash flow increased 47% to $420 million, strengthening the investment case for investors focused on cash generation. Pool Corp: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Stephens raised its price target from $200 to $230 and upgraded the stock to “overweight,” implying additional potential upside based on the provided share price.
• Neutral Sentiment: Pool reaffirmed adjusted 2026 EPS guidance of $10.87-$11.17 and forecast full-year sales growth of 3%-4%, broadly in line with the $10.98 analyst consensus. This supports stability but was not a major upward revision. Pool Reaffirms 2026 Adjusted EPS Guidance
• Negative Sentiment: Operating income declined 3% to $172.2 million and reported EPS was essentially flat year over year, indicating that cost pressures continue despite the sales improvement.
• Negative Sentiment: Wells Fargo maintained an “equal weight” rating despite raising its price target to $190 from $165, while post-earnings commentary cautioned that the recent rally may have outpaced the underlying improvement.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on POOL. Stephens lifted their price target on shares of Pool from $200.00 to $230.00 and gave the company an “overweight” rating in a report on Friday. Bank of America reduced their price objective on shares of Pool from $226.00 to $206.00 and set an “underperform” rating on the stock in a research report on Monday, July 20th. Deutsche Bank Aktiengesellschaft set a $185.00 price objective on shares of Pool in a report on Friday, July 24th. Oppenheimer dropped their target price on shares of Pool from $280.00 to $227.00 and set an “outperform” rating for the company in a research report on Friday, July 24th. Finally, Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Pool in a research note on Tuesday, August 11th. Five analysts have rated the stock with a Buy rating, five have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $227.70.

About Pool

Pool Corporation, doing business as POOLCORP, is a wholesale distributor of swimming pool and outdoor living products. The company supplies pool contractors, retailers, builders, and service professionals with products used to construct, renovate, maintain, and enhance residential and commercial pools.

Its product offerings include swimming pool equipment, pumps, filters, heaters, cleaners, lighting, chemicals, replacement parts, and maintenance supplies. POOLCORP also distributes products for outdoor living, including patio and recreational items, as well as irrigation and landscape-related supplies in selected markets.

Founded in 1993 and headquartered in Covington, Louisiana, POOLCORP serves customers through a network of distribution centers and sales operations in the United States, Canada, Europe, and Australia.