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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.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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