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Valued at a market cap of $14.3 billion, Pool Corporation (POOL) distributes swimming pool supplies, equipment, and related leisure products. The Covington, Louisiana-based company serves swimming pool remodelers and builders, retail swimming pool stores, pool repair and service businesses, and irrigation construction and landscape maintenance contractors. POOL is expected to announce its fiscal Q3 earnings results on Thursday, Oct. 17.
Ahead of this event, analysts expect the pool supplier to report a profit of $3.19 per share, down 8.9% from $3.50 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on another occasion.
Its adjusted earnings of $4.98 per share for the last quarter outpaced the consensus estimates by 1.6%. POOL’s Q2 EPS surprise was supported by steady demand for its recurring maintenance products, such as chemicals, parts, and repair items, coupled with a slight positive pricing impact on sales.
For fiscal 2024, analysts expect POOL to report an EPS of $10.99, down 16.6% from $13.18 in fiscal 2023.
Shares of Pool Corporation have declined 6.5% on a YTD basis, significantly lagging behind both the S&P 500 Index's ($SPX) 19.5% rise and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 9.8% returns over the same period.
On Jul. 25, the stock closed up more than 10% following its Q2 earnings release. Along with an earnings beat, the company’s revenue of $1.77 billion in the period surpassed Wall Street estimates of $1.74 billion.
Analysts' consensus view on POOL’s stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 12 analysts covering the stock, five recommend a "Strong Buy," six suggest "Hold," and one indicates a “Moderate Sell” rating. As of writing, POOL is trading above its mean price target of $359.70.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
