Pool (NASDAQ:POOL) Releases Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Key Points

• Pool exceeded quarterly expectations: The company reported $3.40 in earnings per share, beating estimates by $0.04, while revenue reached $1.50 billion versus the $1.48 billion consensus. Revenue increased 3.7% year over year.
• Shares rose during trading to $187.66, giving Pool a market capitalization of approximately $6.82 billion. The stock remains well below its 12-month high of $303.40.
• Analyst sentiment remains cautious: Recent firms lowered price targets, and the stock carries a consensus “Hold” rating with an average target price of $226.70. Pool also declared a quarterly dividend of $1.30 per share, equivalent to a 2.8% yield.

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

Pool Price Performance

Pool stock traded up $15.22 during midday trading on Thursday, reaching $187.66. The company had a trading volume of 403,798 shares, compared to its average volume of 854,870. The company has a market capitalization of $6.82 billion, a P/E ratio of 17.31, a P/E/G ratio of 2.64 and a beta of 1.05. Pool has a 12-month low of $152.70 and a 12-month high of $303.40. The firm's fifty day simple moving average is $173.96 and its 200-day simple moving average is $190.83. The company has a debt-to-equity ratio of 1.05, a current ratio of 2.67 and a quick ratio of 0.91.

Pool Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, August 27th. Investors of record on Thursday, August 13th were given a dividend of $1.30 per share. This represents a $5.20 annualized dividend and a dividend yield of 2.8%. The ex-dividend date was Thursday, August 13th. Pool's dividend payout ratio is 47.84%.

Analysts Set New Price Targets

POOL has been the topic of a number of recent analyst reports. Bank of America lowered their price target on Pool from $226.00 to $206.00 and set an "underperform" rating on the stock in a research report on Monday, July 20th. Citigroup restated an "underperform" rating on shares of Pool in a research report on Monday. Wells Fargo & Company reduced their target price on Pool from $185.00 to $165.00 and set an "equal weight" rating for the company in a research note on Friday, October 16th. Stifel Nicolaus decreased their target price on Pool from $189.00 to $175.00 and set a "hold" rating on the stock in a research report on Tuesday. Finally, Deutsche Bank Aktiengesellschaft set a $185.00 target price on Pool in a research report on Friday, July 24th. Five equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $226.70.

About Pool

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.

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