Pool Corp. (POOL) Exceeds Q3 Earnings and Revenue Projections
Earnings Performance: Pool Corp. reported quarterly earnings of $3.39 per share, slightly exceeding the Zacks Consensus Estimate of $3.38, and showing an increase from $3.26 per share a year ago. The company has surpassed consensus EPS estimates three times in the last four quarters.
Revenue Insights: The company generated revenues of $1.45 billion for the quarter, surpassing the Zacks Consensus Estimate by 0.14% and showing growth from $1.43 billion year-over-year. Pool Corp. has also topped revenue estimates two times in the last four quarters.
Stock Outlook: Despite a 12.7% decline in shares since the beginning of the year, the stock holds a Zacks Rank #3 (Hold), indicating expected performance in line with the market. Future stock movements will depend on management's commentary and earnings estimate revisions.
Industry Context: The Leisure and Recreation Products industry, to which Pool Corp. belongs, is currently ranked in the top 36% of Zacks industries, suggesting a favorable outlook compared to lower-ranked industries.
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- Market Performance: Equities experienced a decline last week, with all three major indexes falling by at least 1.2%.
- Economic Indicators: This downturn occurred despite a better-than-expected jobs report from the Bureau of Labor Statistics and a relatively stable inflation report.
- Performance Growth: Pool Corporation achieved approximately $1.5 billion in sales and $127 million in net income in Q3 2025, demonstrating its profitability in the current economic environment, despite overall revenue growth being only 1%.
- Dividend Appeal: The company currently offers a dividend yield of 1.9%, and its payout ratio of 45% provides ample room for future dividend growth, attracting investors seeking stable returns.
- Market Outlook: Despite challenges from high interest rates, over 60% of Pool's sales come from non-discretionary segments, allowing it to maintain stability during economic fluctuations, with potential for accelerated sales growth in the future.
- Share Buybacks: In the first nine months of 2025, Pool repurchased $164 million worth of shares, further enhancing shareholder returns and reflecting a proactive approach to capital management.
- Sales Growth Outlook: While sales growth remains soft, Pool Corporation is expected to accelerate in 2026 and beyond, particularly if interest rates decline, with over 60% of its sales coming from non-discretionary segments, providing stability.
- Profitability Performance: In Q3 2025, Pool Corporation achieved approximately $1.5 billion in sales with a net income of $127 million, demonstrating resilience in profitability amid current economic pressures, contrasting with broader market challenges.
- Dividend Appeal: With a current dividend yield of 1.9% and a payout ratio of 45%, Pool Corporation offers ample room for future dividend growth, making it attractive to investors seeking stable returns.
- Share Buyback Strategy: Pool Corporation repurchased $164 million worth of shares in the first nine months of 2025, reflecting a commitment to returning capital to shareholders and boosting market confidence in a company valued at $9.8 billion.
- Earnings Growth: Pool Corp. reported a net income of $70.20 million for Q4, translating to an EPS of $0.15, which marks a significant increase from last year's $56.83 million and $0.13 EPS, indicating strong performance in the market.
- Revenue Increase: The company's revenue surged by 21.7% year-over-year to $1.566 billion, up from $1.287 billion last year, demonstrating robust growth in sales and market demand.
- Market Performance: This increase in earnings and revenue not only boosts investor confidence but may also drive the company's stock price higher, enhancing its competitive position in the industry and solidifying market share.
- Future Outlook: With ongoing operational optimizations and market expansions, the company is expected to maintain its growth momentum in the coming quarters, attracting more investor interest in its long-term development potential.

- Fund Underperformance: Wedgewood Partners Fund reported a 1.8% loss in Q4 2025, significantly trailing the Russell 1000 Growth Index and S&P 500, which gained 1.1% and 2.7%, respectively, indicating a competitive disadvantage in the market.
- New Investment Positions: During the same quarter, the fund established new positions in Amazon (NASDAQ:AMZN) and Chubb (NYSE:CB), reflecting a positive outlook on their growth potential in the evolving market landscape.
- Asset Disposal Strategy: The fund sold its investment in Pool (NASDAQ:POOL) in Q4 2025, likely to reallocate assets in response to market dynamics and optimize its investment portfolio.
- Market Environment Insight: In the context of a K-shaped economy, an increase in online shopping is anticipated, positioning Amazon as an attractive long-term investment opportunity, while Chubb maintains its status as a global leader in the property and casualty insurance sector, showcasing its competitive strength.
- Chevron's Stable Returns: A $1,000 investment buys approximately six shares of Chevron, with a current dividend yield of 4.2%, significantly higher than the average energy stock's 3.3%, demonstrating its ability to consistently reward investors amid market volatility.
- Coca-Cola's Strong Growth: Investing $1,000 allows for the purchase of about 14 shares of Coca-Cola, which, despite market challenges, achieved a 6% organic sales growth in Q3, up from 5% in Q2, showcasing its leadership and brand strength in the consumer staples sector.
- Pool Corp.'s Growth Potential: A $1,000 investment can buy around three shares of Pool Corp., which has a dividend yield of about 2%; its business model relies on pool maintenance, providing a stable revenue stream as each new pool built expands its customer base.
- Buffett's Legacy Continues: Chevron, Coca-Cola, and Pool Corp. are all remnants of Buffett's era, and with Abel as the new CEO, these stocks are likely to remain in the portfolio, reducing the risk of being sold off.







