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Sep 30, 2024

Pool Corp. Q3 2024 Earnings Report

Reported third quarter results with resilient recurring maintenance revenues and progress on technology rollouts.

Key Takeaways

Pool Corporation reported Q3 2024 net sales of $1.4 billion, a 3% decrease compared to Q3 2023. The company's performance was supported by steady demand for maintenance products, while discretionary portions of the business experienced pressure. Diluted EPS was reported at $3.27, or $3.26 without tax benefits. The company maintains its annual earnings guidance range of $11.06 - $11.46 per diluted share.

Net sales reached $1.4 billion, a 3% decrease year-over-year.

Gross margin remained consistent at 29.1%.

Operating income decreased 9% to $176.4 million with an operating margin of 12.3%.

Diluted EPS was $3.27, or $3.26 without tax benefits.

Total Revenue
$1.43B
Previous year: $1.47B
-2.8%
EPS
$3.27
Previous year: $3.51
-6.8%
Gross Profit
$416M
Previous year: $429M
-2.9%
Cash and Equivalents
$91.3M
Previous year: $85.2M
+7.2%
Free Cash Flow
$305M
Previous year: $360M
-15.3%
Total Assets
$3.37B
Previous year: $3.43B
-1.8%

Pool Corp.

Pool Corp.

Forward Guidance

Pool Corporation maintains its 2024 full year earnings guidance of $11.06 to $11.46 per diluted share, including the $0.21 tax benefit realized this year.

Positive Outlook

  • Committing to investing in continuous improvements to enhance each customer’s experience
  • Expanding marketing and technological tools
  • Providing the broadest product assortment through long-standing partnerships with vendors
  • Optimizing vertical integration capabilities
  • Building out digital ecosystem

Challenges Ahead

  • Sensitivity of business to weather conditions
  • Changes in economic conditions, consumer discretionary spending, the housing market, inflation or interest rates
  • Ability to maintain favorable relationships with suppliers and manufacturers
  • Extent to which home-centric trends will continue to moderate or reverse
  • Competition from other leisure product alternatives or mass merchants