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With a market cap of $13.5 billion, Pool Corporation (POOL) is the world's leading independent distributor of swimming pool equipment, supplies, and related backyard products. The company operates over 300 locations worldwide and serves diverse customers, including pool remodelers, specialty retailers, and landscape contractors. Its extensive range includes pool maintenance essentials, construction materials, and outdoor living products like built-in BBQs and irrigation systems.
POOL is expected to announce its fiscal Q4 earnings results on Thursday, Feb. 27. Ahead of this event, analysts expect the distributor of supplies for swimming pools to report a profit of $0.88 per share, down 32.3% from $1.30 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. In Q3, POOL exceeded the consensus EPS estimate by 3.5%.
For fiscal 2024, analysts expect POOL to report an EPS of $11.03, down 16.3% from $13.18 in fiscal 2023. However, EPS is expected to grow nearly 8% year-over-year to $11.91 in fiscal 2025.
Shares of Pool Corporation have declined 7.1% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 25.3% surge and the Consumer Discretionary Select Sector SPDR Fund's (XLY) 32.9% return over the period.
Shares of Pool Corporation surged 7.6% on Oct. 24 due to strong Q3 2024 results, with adjusted EPS of $3.26 and revenue of $1.4 billion, both surpassing expectations. The company's performance was driven by strong demand in the maintenance segment and growth in private-label chemical sales, supported by Pool360 technology rollouts and enhanced digital marketing efforts. While discretionary product sales and construction-related revenues remained soft, steady gross margins at 29.1% reassured investors.
Analysts' consensus view on POOL’s stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 12 analysts covering the stock, five recommend "Strong Buy," six indicate “Hold,” and one advises "Moderate Sell." As of writing, Pool Corporation is trading below the average analyst price target of $378.40.
