COVINGTON, La. - Pool (NASDAQ:POOL) Corporation (NASDAQ:POOL) reported second-quarter earnings that exceeded analysts' expectations, alongside an optimistic full-year earnings outlook, sending its shares up 2.3%.
The company's solid performance in maintenance revenues and a confirmed annual guidance range that surpasses the consensus forecast underpinned investor confidence.
For the second quarter ended June 30, 2024, Pool Corp . posted adjusted earnings per share (EPS) of $4.98, edging out the analyst estimate of $4.91. The company's revenue for the quarter was $1.8 billion, surpassing the consensus estimate of $1.75 billion and marking a 5% decline from the $1.9 billion reported in the same quarter last year.
Despite the year-over-year (YoY) drop, the results reflect a positive trend, with the company noting an improvement from the 7% decrease observed in the first quarter of 2024.
President and CEO Peter D. Arvan attributed the quarter's strength to robust demand for maintenance products, which helped offset lower consumer spending on discretionary items. He also highlighted the company's strategic growth investments and capacity creation efforts as key drivers for future performance.
The company's gross margin stood at 30.0%, a slight decrease from 30.6% in the second quarter of 2023, reflecting a shift in product mix and lower sales of higher-margin building materials. Operating income fell 17% YoY to $271.5 million, with operating margin dipping to 15.3% from 17.6% the previous year.
Looking ahead, Pool Corp. confirmed its full-year 2024 EPS guidance range of $11.05 to $11.45, which is above the analyst consensus of $11.00. This guidance includes a $0.01 tax benefit recognized in the second quarter. The midpoint of the guidance range, $11.25, is higher than the consensus, indicating management's confidence in the company's ability to navigate a challenging market.
Arvan expressed pride in the team's ability to deliver solid results and reaffirmed the company's commitment to providing exceptional returns to shareholders. "Our substantial capital strength, operating efficiency, differentiated customer service value proposition, and vast sales center network will provide exceptional returns to our shareholders over the long-term," he said.
Investors responded positively to the earnings beat and the reaffirmed outlook, with the stock price rising 2.3% as a sign of market approval.
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