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Dec 31, 2022

Pool Corp. Q4 2022 Earnings Report

Reported record results with annual sales growth and operating income increase.

Key Takeaways

Pool Corporation reported a 6% increase in net sales for Q4 2022, reaching $1.1 billion compared to $1.0 billion in Q4 2021. However, net income decreased by 33% to $71.9 million, and earnings per diluted share decreased by 31% to $1.82.

Net sales increased 6% to $1.1 billion in the fourth quarter of 2022.

Operating income decreased 16% to $107.3 million compared to $127.9 million in the same period of 2021.

Earnings per diluted share decreased 31% to $1.82 in the fourth quarter of 2022.

Gross margin decreased 230 basis points to 28.8%.

Total Revenue
$1.1B
Previous year: $1.04B
+5.8%
EPS
$1.82
Previous year: $2.63
-30.8%
Gross Profit
$316M
Previous year: $322M
-2.1%
Cash and Equivalents
$45.6M
Previous year: $24.3M
+87.5%
Free Cash Flow
$162M
Previous year: -$59M
-374.1%
Total Assets
$3.57B
Previous year: $3.23B
+10.4%

Pool Corp.

Pool Corp.

Forward Guidance

The company expects earnings for 2023 to be in the range of $16.03 to $17.03 per diluted share, including an estimated $0.03 favorable impact from ASU 2016-09.

Positive Outlook

  • Increasing demand for non-discretionary maintenance products.
  • Expansion of the installed base of pools.
  • Continued renovation activity.
  • Extensive sales center network will enable solid results.
  • Consumer preferences for smart pool products and our expanded ability to efficiently serve the DIY market will be a focus as we expect inflation to moderate in 2023.

Challenges Ahead

  • New pool construction levels are challenged against the higher comparison we saw over the last two years.
  • Uncertainty presented by short-term market concerns.