Zacks Research Has Pessimistic Outlook of Pool Q3 Earnings

Key Points

• Zacks Research lowered Pool’s Q3 2026 EPS estimate to $3.33 from $3.46 and maintained a “Hold” rating, reflecting a more cautious earnings outlook.
• Pool’s latest quarter modestly beat expectations, with EPS of $5.38 versus the $5.33 consensus and revenue of $1.82 billion, up 2.2% year over year. The company maintained fiscal 2026 guidance of $10.66–$10.96 EPS.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating, while several firms recently reduced their price targets. Pool also declared a $1.30 quarterly dividend and authorized a $600 million share-buyback program.

Pool Corporation (NASDAQ:POOL - Free Report) - Equities researchers at Zacks Research reduced their Q3 2026 earnings estimates for Pool in a research report issued on Thursday, August 13th. Zacks Research analyst Team now expects that the specialty retailer will post earnings of $3.33 per share for the quarter, down from their prior estimate of $3.46. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Pool's current full-year earnings is $10.95 per share. Zacks Research also issued estimates for Pool's Q4 2026 earnings at $0.77 EPS, Q1 2027 earnings at $1.52 EPS, Q2 2027 earnings at $5.69 EPS, FY2027 earnings at $11.71 EPS, Q2 2028 earnings at $6.21 EPS and FY2028 earnings at $12.92 EPS.

A number of other equities research analysts have also weighed in on the company. Stifel Nicolaus lowered their price objective on Pool from $235.00 to $189.00 and set a "hold" rating for the company in a research note on Friday, July 24th. Deutsche Bank Aktiengesellschaft set a $185.00 price objective on shares of Pool in a report on Friday, July 24th. Stephens reduced their price target on shares of Pool from $290.00 to $225.00 and set an "overweight" rating on the stock in a research report on Friday, July 24th. Bank of America cut their price objective on Pool from $226.00 to $206.00 and set an "underperform" rating on the stock in a research note on Monday, July 20th. Finally, Wall Street Zen upgraded Pool from a "sell" rating to a "hold" rating in a report on Monday, April 27th. Five investment analysts have rated the stock with a Buy rating, six have given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $235.67.

Pool Stock Up 0.6%

Shares of NASDAQ:POOL opened at $200.57 on Friday. Pool has a 1 year low of $172.68 and a 1 year high of $336.15. The stock has a 50-day simple moving average of $200.30 and a 200-day simple moving average of $210.07. The company has a debt-to-equity ratio of 1.05, a quick ratio of 0.91 and a current ratio of 2.67. The stock has a market capitalization of $7.29 billion, a P/E ratio of 18.45, a PEG ratio of 2.70 and a beta of 1.06.

Pool (NASDAQ:POOL - Get Free Report) last posted its quarterly earnings results on Thursday, July 23rd. The specialty retailer reported $5.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.33 by $0.05. Pool had a net margin of 7.40% and a return on equity of 32.74%. The firm had revenue of $1.82 billion during the quarter, compared to analysts' expectations of $1.82 billion. During the same period in the prior year, the company posted $5.17 earnings per share. The firm's revenue for the quarter was up 2.2% on a year-over-year basis. Pool has set its FY 2026 guidance at 10.660-10.960 EPS.

Pool Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 27th. Stockholders of record on Thursday, August 13th will be paid a dividend of $1.30 per share. The ex-dividend date is Thursday, August 13th. This represents a $5.20 annualized dividend and a dividend yield of 2.6%. Pool's dividend payout ratio is 47.84%.

Pool declared that its board has authorized a stock buyback plan on Wednesday, April 29th that authorizes the company to buyback $600.00 million in shares. This buyback authorization authorizes the specialty retailer to reacquire up to 7.8% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board believes its shares are undervalued.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Deprince Race & Zollo Inc. boosted its stake in shares of Pool by 197.5% in the 1st quarter. Deprince Race & Zollo Inc. now owns 170,676 shares of the specialty retailer's stock worth $34,533,000 after buying an additional 113,306 shares during the last quarter. Schwartz Investment Counsel Inc. bought a new stake in Pool during the fourth quarter worth $4,575,000. King Luther Capital Management Corp boosted its position in Pool by 236.4% in the fourth quarter. King Luther Capital Management Corp now owns 11,146 shares of the specialty retailer's stock worth $2,550,000 after purchasing an additional 7,833 shares during the last quarter. CenterBook Partners LP purchased a new stake in shares of Pool during the 4th quarter valued at $3,381,000. Finally, LRT Capital Management LLC bought a new stake in shares of Pool during the 4th quarter worth $1,188,000. Institutional investors and hedge funds own 98.99% of the company's stock.

Pool News Roundup

Here are the key news stories impacting Pool this week:

• Positive Sentiment: Pool’s latest reported quarter provided a modest operational offset: quarterly EPS of $5.38 exceeded the $5.33 analyst consensus, while revenue of $1.82 billion was in line with expectations and increased 2.2% year over year.
• Neutral Sentiment: The broader consensus for the current fiscal year remains $10.95 EPS, and Zacks’ Hold rating indicates limited conviction that near-term catalysts will materially change the outlook. Pool opened near its 50-day moving average but remains below its 200-day average, reflecting a cautious technical backdrop.
• Negative Sentiment: Zacks reduced estimates for Q3 2026 EPS to $3.33 from $3.46, Q4 2026 EPS to $0.77 from $0.81, Q1 2027 EPS to $1.52 from $1.59, and Q2 2027 EPS to $5.69 from $5.86. Full-year 2027 EPS was cut to $11.71 from $11.94, and FY2028 EPS to $12.92 from $13.02. The broad pattern of reductions suggests analysts expect softer earnings momentum for Pool’s specialty retail and pool-supply business.

Pool Company Profile

Pool Corporation is a leading wholesale distributor of swimming pool supplies, equipment, and related outdoor living products. Headquartered in Covington, Louisiana, the company serves a diverse customer base that includes service professionals, independent retailers, high-volume builders, and national retail chains. Pool Corporation's extensive branch network enables it to maintain strong local customer relationships while leveraging its scale to source products efficiently from manufacturers around the world.

The company's product portfolio spans pool and spa chemicals, water treatment equipment, pumps, filters, heaters, automation and control systems, liners, safety covers, and cleaning accessories.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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