Earnings Alerts

Pool Corp (POOL) Earnings: FY EPS Guidance Slashed Amid Lower Demand and Cautious Consumer Spending

  • Pool Corporation Cuts FY EPS Guidance: The company has lowered its full-year earnings per share (EPS) guidance to $11.04 to $11.44, down from the previous range of $13.19 to $14.19. The analyst estimate was $13.11.
  • 2Q EPS Expectation: For the second quarter, the company expects its EPS to range between $4.85 and $4.95 per share.
  • Tax Benefit in Q1 2024: The revised full-year EPS guidance includes a $19 million tax benefit recorded in the first quarter of 2024.
  • New Pool Units Decline: The company anticipates a decrease in new pool units by 15% to 20% for the year.
  • Net Sales Down: For the full year, net sales are expected to decline by approximately 6.5%.
  • Remodeling Activity Drop: Remodeling activities are projected to fall by as much as 15% for the year.
  • Challenges Due to Cautious Consumer Spending: Discretionary components of the business, especially big-ticket items like swimming pools and outdoor living projects, have faced challenges due to cautious consumer spending, resulting in an 11% decline in sales of building materials compared to the same period in 2023.
  • Focus on Recurring Revenues and Cost Management: With over 60% of its business derived from recurring revenues that are generally not affected by macroeconomic conditions, the company is concentrating on managing controllable expenses and generating free cash flow while providing top-notch customer service.
  • Stock Trading Halted: Trading of the company’s shares has been halted.
  • Analyst Recommendations: Current analyst recommendations include 5 buys, 7 holds, and 1 sell.

Pool Corp on Smartkarma

On Smartkarma, independent investment analysts like Baptista Research provide insightful coverage on Pool Corporation. Baptista Research recently published reports analyzing Pool Corporation’s performance and future prospects. In one report titled “Pool Corporation: What Are The Major Competitive Pressures That It Is Facing? – Major Drivers,” Pool Corporation reported $1.1 billion in net sales for the latest Q1 earnings. Although this figure showed a 7% dip from the previous year, it represented a 6% increase compared to the same period in 2021. The report highlighted that despite the seasonal challenges, Pool Corporation has consistently met or exceeded the $1 billion threshold in recent years.

In another report, “Pool Corporation: Initiation Of Coverage – 5 Major Drivers & 5 Major Challenges For The Future! – Financial Forecasts,” Baptista Research delved into the financial performance of Pool Corporation, the world’s largest wholesale distributor of swimming pool supplies. The report noted a 10% decline in total sales for 2023 to $5.5 billion, attributed to adverse weather conditions and high industry inventory levels. Despite these challenges, the analysts maintain a bullish sentiment on Pool Corporation’s future potential, highlighting both the drivers and challenges the company faces as it navigates the market landscape.


A look at Pool Corp Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth3
Resilience2
Momentum3
OVERALL SMART SCORE2.4

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

Pool Corporation, a wholesale distributor of swimming pool supplies, equipment, and leisure products, has a mixed outlook based on Smartkarma Smart Scores. While the company scores moderately on Growth and Momentum factors, indicating potential for expansion and market performance, it lags behind on Value, Dividend, and Resilience scores. This suggests that investors may need to assess the company’s long-term prospects carefully.

Investors considering Pool Corp should note its diverse range of products, including construction materials, replacement parts, pool care products, and spas. With an overall mixed outlook, the company’s performance in the coming years may be influenced by factors such as its ability to drive growth and maintain market momentum, despite scoring lower on value, dividend, and resilience metrics.


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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