Pool (NASDAQ:POOL) Issues Quarterly Earnings Results, Beats Estimates By $0.05 EPS

Pool (NASDAQ:POOL) issued its earnings results on Thursday. The specialty retailer reported $5.38 EPS for the quarter, beating the consensus estimate of $5.33 by $0.05, Zacks reports. The business had revenue of $1.82 billion for the quarter, compared to the consensus estimate of $1.82 billion. Pool had a return on equity of 32.37% and a net margin of 7.57%.The company’s revenue was up 2.2% compared to the same quarter last year. During the same period last year, the business posted $5.17 EPS. Pool updated its FY 2026 guidance to 10.660-10.960 EPS.

Here are the key takeaways from Pool’s conference call:

• Pool reported Q2 net sales up 2% to $1.8 billion, with strength in recurring maintenance and building materials offsetting softer new construction and discretionary demand. Management said the business remains resilient, and Europe delivered 11% sales growth.
• Profitability was pressured by higher inbound freight costs and an unfavorable customer mix, which pushed gross margin down 30 basis points to 29.7%. Management said pricing and supply-chain actions are underway, but the freight pressure may not be fully recovered immediately.
• Despite the margin headwind, Pool held expense growth to 1% on an adjusted basis in Q2 and delivered adjusted EPS of $5.38, up 4% excluding one-time CEO transition costs. The company also reiterated full-year adjusted EPS guidance of $10.87 to $11.17.
• New CEO John Watwood outlined four priorities: sales excellence, pricing and supply-chain discipline, operational execution, and disciplined M&A. He emphasized a focus on share gains, tighter branch execution, and selective tuck-in acquisitions rather than major near-term expansion spending.
• Management highlighted continued traction in its digital and proprietary offerings, with POOL360 reaching 18% of sales and greenfield locations still improving as they mature. The company said it expects strong cash generation and remains active on shareholder returns, including dividends and buybacks.

Pool Price Performance

Shares of POOL stock traded down $4.39 on Friday, reaching $178.94. The company’s stock had a trading volume of 185,256 shares, compared to its average volume of 897,182. The stock’s fifty day simple moving average is $195.93 and its 200-day simple moving average is $216.49. Pool has a 1 year low of $172.68 and a 1 year high of $336.15. The company has a market capitalization of $6.52 billion, a price-to-earnings ratio of 16.48, a price-to-earnings-growth ratio of 2.52 and a beta of 1.05. The company has a current ratio of 1.87, a quick ratio of 0.55 and a debt-to-equity ratio of 1.09.

Pool Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, May 28th. Stockholders of record on Thursday, May 14th were issued a dividend of $1.30 per share. This is a positive change from Pool’s previous quarterly dividend of $1.25. The ex-dividend date of this dividend was Thursday, May 14th. This represents a $5.20 annualized dividend and a dividend yield of 2.9%. Pool’s payout ratio is currently 47.84%.

Pool News Summary

Here are the key news stories impacting Pool this week:

• Positive Sentiment: Pool reported Q2 adjusted EPS of $5.38, topping estimates, and revenue of $1.82 billion, which was in line with expectations and up 2.2% year over year. Article Title
• Positive Sentiment: The company said maintenance demand remained resilient and building materials activity improved, helping offset weakness in discretionary spending. Article Title
• Neutral Sentiment: Pool reaffirmed its full-year outlook, but the guidance range was not raised despite the earnings beat, suggesting management is still cautious on the demand backdrop. Article Title
• Negative Sentiment: Gross margin slipped 30 basis points and operating income declined, pressured by higher inbound freight costs, customer mix, and CEO transition expenses. Article Title
• Negative Sentiment: Management also described discretionary demand as measured and new pool construction as muted, which is weighing on investor sentiment during the summer selling season. Article Title

Pool declared that its board has approved a share repurchase plan on Wednesday, April 29th that permits the company to buyback $600.00 million in shares. This buyback authorization permits the specialty retailer to purchase up to 7.8% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on POOL shares. Weiss Ratings lowered Pool from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Thursday, May 14th. Stifel Nicolaus set a $189.00 price target on Pool in a research note on Friday. Wall Street Zen upgraded Pool from a “sell” rating to a “hold” rating in a research report on Monday, April 27th. Wells Fargo & Company dropped their target price on shares of Pool from $230.00 to $215.00 and set an “equal weight” rating for the company in a report on Wednesday, April 8th. Finally, Robert W. Baird set a $260.00 price target on Pool in a report on Friday. Five analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $248.33.

Insider Buying and Selling at Pool

In other Pool news, Director John E. Stokely bought 1,000 shares of the firm’s stock in a transaction dated Thursday, May 7th. The shares were purchased at an average cost of $193.06 per share, for a total transaction of $193,060.00. Following the transaction, the director owned 16,230 shares of the company’s stock, valued at $3,133,363.80. This represents a 6.57% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director De La Mesa Manuel J. Perez acquired 10,000 shares of Pool stock in a transaction on Wednesday, May 13th. The shares were bought at an average cost of $175.95 per share, for a total transaction of $1,759,500.00. Following the completion of the purchase, the director directly owned 40,108 shares of the company’s stock, valued at $7,057,002.60. The trade was a 33.21% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired 21,989 shares of company stock worth $4,042,747 over the last three months. 3.00% of the stock is owned by company insiders.

Institutional Trading of Pool

Institutional investors have recently bought and sold shares of the stock. Wealthspire Advisors LLC boosted its position in shares of Pool by 4.8% during the fourth quarter. Wealthspire Advisors LLC now owns 1,051 shares of the specialty retailer’s stock valued at $240,000 after buying an additional 48 shares during the period. Zions Bancorporation National Association UT grew its holdings in shares of Pool by 222.4% in the fourth quarter. Zions Bancorporation National Association UT now owns 748 shares of the specialty retailer’s stock worth $171,000 after purchasing an additional 516 shares during the last quarter. American Trust bought a new stake in Pool during the 3rd quarter valued at about $209,000. Laird Norton Wetherby Wealth Management LLC purchased a new position in shares of Pool during the third quarter worth approximately $210,000. Finally, Fiduciary Trust Co purchased a new position in shares of Pool during the third quarter worth approximately $223,000. 98.99% of the stock is currently owned by institutional investors.

Pool Company Profile

Pool Corporation is a leading wholesale distributor of swimming pool supplies, equipment, and related outdoor living products. Headquartered in Covington, Louisiana, the company serves a diverse customer base that includes service professionals, independent retailers, high-volume builders, and national retail chains. Pool Corporation’s extensive branch network enables it to maintain strong local customer relationships while leveraging its scale to source products efficiently from manufacturers around the world.

The company’s product portfolio spans pool and spa chemicals, water treatment equipment, pumps, filters, heaters, automation and control systems, liners, safety covers, and cleaning accessories.