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

Pool (NASDAQ:POOL) issued its quarterly earnings results on Thursday. The specialty retailer reported $3.40 EPS for the quarter, topping analysts’ consensus estimates of $3.36 by $0.04, Zacks reports. The business had revenue of $1.50 billion during the quarter, compared to the consensus estimate of $1.48 billion. Pool had a net margin of 7.40% and a return on equity of 32.74%. The company’s quarterly revenue was up 3.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $3.39 earnings per share.

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 Performance

POOL stock traded down $1.71 during mid-day trading on Friday, reaching $195.50. The company had a trading volume of 348,506 shares, compared to its average volume of 861,497. The stock has a market capitalization of $7.10 billion, a P/E ratio of 17.99, a P/E/G ratio of 2.65 and a beta of 1.05. The stock’s 50-day simple moving average is $173.89 and its two-hundred day simple moving average is $190.79. Pool has a one year low of $152.70 and a one year high of $301.69. The company has a quick ratio of 0.91, a current ratio of 2.67 and a debt-to-equity ratio of 1.05.

Pool Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Thursday, August 13th were paid a $1.30 dividend. This represents a $5.20 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date was Thursday, August 13th. Pool’s dividend payout ratio (DPR) is presently 47.84%.

Analyst Ratings Changes

Several equities analysts recently commented on the company. Weiss Ratings reiterated a “sell (d+)” rating on shares of Pool in a research note on Tuesday, August 11th. Robert W. Baird set a $250.00 target price on shares of Pool in a research note on Friday. Longbow Research reissued a “neutral” rating on shares of Pool in a research report on Monday. Stephens upped their price objective on shares of Pool from $200.00 to $230.00 and gave the company an “overweight” rating in a research report on Friday. Finally, Oppenheimer decreased their price target 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. Five research analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $225.20.

Key Pool News

Here are the key news stories impacting Pool this week:

• Positive Sentiment: Third-quarter results exceeded expectations. Pool reported adjusted EPS of $3.40 versus the $3.36 consensus estimate and revenue of approximately $1.50 billion versus $1.48 billion expected. Sales rose 4% year over year, accelerating from 2% growth in the second quarter. Pool Corporation Reports Third Quarter Results
• Positive Sentiment: Margin resilience supported sentiment. Management was able to pass rising freight costs on to customers, helping protect profitability. Growth was supported by pricing, solid maintenance demand and continued improvement in building materials. Why Pool Corp Stock Jumped
• Positive Sentiment: Stephens raised its price target to $230 from $200 and upgraded or reaffirmed an “overweight” view, signaling greater confidence in Pool’s recovery and potential upside. Stephens Pool recommendations
• Neutral Sentiment: Annual guidance was reaffirmed. Pool maintained its 2026 adjusted EPS range of $10.87 to $11.17 and expects full-year sales growth of approximately 3% to 4%, reducing the risk of a near-term guidance cut but offering limited incremental upside. Pool reaffirms 2026 guidance
• Negative Sentiment: Profitability remains pressured. Quarterly operating income declined 3% to $172.2 million, while reported EPS was essentially flat from the prior year, highlighting ongoing cost and demand challenges despite the sales improvement. Pool Corporation quarterly results

Pool Company Profile

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.