POOL Earnings Prediction
The chart below shows how POOL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, POOL sees a +1.01% change in stock price 10 days leading up to the earnings, and a +0.97% change 10 days following the report. On the earnings day itself, the stock moves by +0.41%. This data can give you a slight idea of what to expect for the next quarter's release.
POOL Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
987.48M
-1.55%
-31.08%
Gross Margin
29.39%
0.34%
1.14%
Operating Margin
6.14%
-22.38%
-50.12%
Net Margin
3.78%
-26.32%
-56.90%
EPS
0.98
-25.76%
-70.03%
No Data Available
POOL Earnings Analysis
Pool Corp Corporation (POOL.O) Earnings Conference Call
Positive
Earnings Per Share Beat: Pool Corporation reported an EPS of $0.984, exceeding expectations of $0.89, indicating strong financial performance.
Revenue Performance Exceeds Guidance: The company achieved $5.3 billion in revenue for the full year, slightly above guidance, showcasing solid execution despite economic pressures.
Gross Margin Improvement: Gross margin improved to 29.4% in Q4, reflecting effective management of product mix and pricing strategies.
Consistent Operating Income Margin: Operating income for the full year was $617 million, maintaining an operating margin of 11.6%, consistent with previous years, demonstrating operational efficiency.
Sales Network Expansion: The company opened ten new sales centers and added two through acquisitions, expanding its distribution network and market presence.
Chemical Sales Growth: Chemical sales increased by 2% for the year and 8% in Q4, driven by strong private label sales and post-storm cleanup efforts in Florida.
B2B Application Adoption Growth: Orders through the B2B Pool 360 application increased by 12.5% in Q4, indicating growing adoption of their technological tools.
Franchisee Sales Surge: Pinch A Penny retail sales increased by 15% in Q4, reflecting strong performance in franchisee sales, particularly in Florida.
Debt Reduction Achievement: The company reduced total debt by $103 million, showcasing effective capital management and financial health.
Shareholder Value Commitment: Pool Corporation returned $483 million to shareholders through dividends and share repurchases, highlighting a commitment to shareholder value.
Negative
Sales Decline Analysis: Sales for the full year decreased by 4% compared to 2023, indicating a decline in overall business performance.
Pool Construction Decline: New pool construction units are expected to decline by approximately 15% in 2024, reflecting a significant downturn in the construction market.
Gross Margin Decline: Gross margin finished the year at 29.7%, down from 30% in the prior year, primarily due to a weaker product mix and competitive pressures.
Decline in Operating Income: Operating income for the fourth quarter was $60.7 million, down from $79 million in the prior year, indicating reduced profitability.
Earnings Per Share Decline: Diluted earnings per share for the fourth quarter was $0.98, a decrease from $1.32 in the same quarter of 2023, reflecting lower earnings performance.
Rising Operating Expenses: Operating expenses increased by 7% over the previous year, indicating rising costs that could impact profitability.
European Sales Decline: Sales in Europe declined by 9% for the full year and 5% in the fourth quarter, showing weakness in international markets.
Sales Growth Outlook: The company anticipates flat to low single-digit sales growth for 2025, indicating a lack of strong recovery in the market.
High Interest Rate Impact: Interest rates are expected to remain high, which could negatively impact consumer spending and financing for new pool construction.
Inflation and Cost Pressures: The company expects continued inflation impacts and higher operating costs, which may pressure margins and profitability.
POOL FAQs
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POOL Earning Call Sentiment
Pool Corporation (NASDAQ:POOL) Q4 2024 Earnings Call Transcript
POOL.O
-1.5%Positive
The earnings call reveals a mixed performance with declining revenue and EPS, reduced gross margin, and increased operating expenses. Despite positive initiatives like POOL360 and share repurchases, the weak guidance on new construction and economic pressures weigh heavily. The Q&A section highlights competitive pressures and challenges in achieving growth targets, while management's evasive responses on DIY growth raise concerns. Overall, the negative aspects outweigh the positives, leading to a negative sentiment rating.
