Earnings Alerts

Pool Corp (POOL) Earnings: 2Q EPS Exceeds Estimates Despite Sales Dip

Pool Corporation Q2 Highlights

  • Pool Corp reported Q2 EPS of $4.99, beating estimates of $4.91 but down from $5.91 year-over-year (y/y).
  • Net sales for Q2 were $1.77 billion, a 4.7% decrease y/y but above the estimated $1.74 billion.
  • Gross margin was 30%, slightly lower than the 30.6% in the previous year, but higher than the estimate of 29.5%.
  • Company expects that expenses will moderate in Q3 and Q4 of 2024.
  • Strong demand for maintenance products helped achieve solid quarterly performance despite lower consumer spending on expensive discretionary items.
  • Gross margin improvements are attributed to structural changes in the business, even with lower sales contributions from building materials.
  • Stock recommendations: 5 buys, 7 holds, and 1 sell.

Pool Corp on Smartkarma

Pool Corporation has been under the analysis spotlight on Smartkarma by independent research providers like Baptista Research. In one report titled “Pool Corporation: What Are The Major Competitive Pressures That It Is Facing? – Major Drivers” by Baptista Research, the company’s Q1 earnings were highlighted, showing a 7% dip from the previous year but a 6% increase from the same period in 2021. Despite this dip, Pool Corporation has maintained a strong performance, marking its fourth successive year of meeting or exceeding the $1 billion threshold in a slow seasonal quarter.

In another report, “Pool Corporation: Initiation Of Coverage – 5 Major Drivers & 5 Major Challenges For The Future! – Financial Forecasts” by Baptista Research, the focus was on the company being the largest wholesale distributor of swimming pool supplies. Total sales for 2023 declined by 10% from the previous year to $5.5 billion, with challenges attributed to abnormal selling conditions due to poor weather and industry-wide inventory issues. The reports provide valuable insights into Pool Corp‘s financial performance and future challenges as analyzed by reputable independent analysts on Smartkarma.


A look at Pool Corp Smart Scores

FactorScoreMagnitude
Value2
Dividend3
Growth3
Resilience2
Momentum3
OVERALL SMART SCORE2.6

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

<p>Pool Corporation, a wholesale distributor of swimming pool supplies and leisure products, presents a mixed outlook as per Smartkarma Smart Scores. With a Value score of 2, the company’s current stock price may not necessarily reflect its true worth. On the positive side, Pool Corp scores a 3 for both Dividend and Growth, indicating a stable dividend payment history and moderate potential for growth. However, with Resilience and Momentum scores of 2 and 3 respectively, the company may face some challenges in weathering economic downturns but shows promising signs of upward price movement. Overall, Pool Corp‘s outlook suggests a company with growth potential and stable dividends, although its current valuation might not fully capture its intrinsic value.</p>

<p>Pool Corporation’s Smartkarma Smart Scores paint a picture of a company with a moderate outlook in various key areas. Specializing in the distribution of swimming pool supplies and leisure products, Pool Corp holds a position of strength in the market. Its scores of 3 for both Growth and Momentum indicate potential for expansion and positive market sentiment, while its Value and Resilience scores of 2 each signal areas where improvements could be made. Particularly noteworthy is the Dividend score of 3, reflecting a consistent track record of dividend payments. In summary, Pool Corporation appears to be well-positioned for growth and profitability in the long term, supported by its established presence in the market and strong performance in key areas of investment analysis.</p>


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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