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Dec 31, 2020
Pool Corp. Q4 2020 Earnings Report
Pool Corporation reported record results driven by unprecedented demand and favorable weather conditions.
Key Takeaways
Pool Corporation reported a 44% increase in net sales for Q4 2020, reaching $839.3 million, and earnings per diluted share increased by 230% to $1.45. The company's performance was driven by stay-at-home trends, favorable weather, and acquisitions.
Net sales increased 44% to $839.3 million compared to Q4 2019.
Gross margin increased 70 basis points to 28.5% due to increased purchase volumes.
Operating income increased 188% to $74.4 million compared to Q4 2019.
Earnings per diluted share increased 230% to $1.45 compared to Q4 2019.
Pool Corp.
Pool Corp.
Forward Guidance
The company projects earnings for 2021 to grow on top of the incredible results delivered in 2020 and be in the range of $9.12 to $9.62 per diluted share, including an estimated $0.11 favorable impact from ASU 2016-09.
Positive Outlook
- Investments in capacity creation will contribute to solid growth in 2021.
- Recent acquisitions will contribute to solid growth in 2021.
- New sales center openings will contribute to solid growth in 2021.
- Long-term demand within the industry remains strong.
- Results in 2021 will continue to benefit from robust consumer interest in outdoor living.
Challenges Ahead
- In the second half of the year, the company expects to face tougher year-over-year comparisons.
- Inherent industry capacity constraints are expected in the second half of the year.
- Impacts on our business from the COVID-19 pandemic and the extent to which home-centric trends will continue, accelerate or reverse.
- The sensitivity of our business to weather conditions.
- Changes in the economy and the housing market.