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With a market cap of $11.5 billion, Louisiana-based Pool Corporation (POOL) leads the global distribution of swimming pool equipment, parts, and related backyard products across various sectors. The company is gearing up to unveil its fiscal Q2 earnings results before the market opens on Thursday, Jul. 25.
Ahead of the event, analysts expect POOL to report a profit of $4.89 per share, down nearly 17% from $5.89 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in two of the past four quarters while missing on two other occasions. The company missed the consensus EPS estimate by almost 1.1% in the most recent quarter due to lower demand for its pool equipment.
For fiscal 2024, analysts expect POOL to report EPS of $10.94, down 17% from $13.18 in fiscal 2023. However, looking forward to fiscal 2025, EPS is expected to grow by 18.7% annually to $12.98.
In 2024, POOL's shares have fallen 25% on a YTD basis, lagging behind both the S&P 500 Index's ($SPX) 18.1% gain and the S&P 500 Cons Disc Sector SPDR's (XLY) 7.1% increase over the same period.
Despite increasing its full-year profit forecast, shares of POOL fell nearly 2% on Apr. 25 as Q1 earnings and revenue fell short of Wall Street's expectations. Additionally, concerns about softening demand for pool equipment amid high interest rates and inflation further contributed to the decline. Plus, the stock slipped in June primarily due to a disappointing update on the swimming pool season, where management cited persistently weak demand for new pool construction and lowered its full-year earnings estimates.
Analysts' consensus rating on Pool Corporation stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 12 analysts covering the stock, opinions include five "Strong Buys," six "Holds," and one "Moderate Sell," a consensus that has remained steady over the past three months.
The average analyst price target for POOL is $329.60, suggesting a potential upside of 10.3% from current levels.
On the date of publication, Sohini Mondal 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.
