Pool (NASDAQ:POOL) Posts Quarterly Earnings Results, Misses Estimates By $3.91 EPS

Pool (NASDAQ:POOL) posted its earnings results on Thursday. The specialty retailer reported $1.43 earnings per share for the quarter, missing analysts’ consensus estimates of $5.34 by ($3.91), Zacks reports. Pool had a return on equity of 31.49% and a net margin of 7.67%.The firm had revenue of $1.14 billion for the quarter, compared to analysts’ expectations of $1.82 billion. During the same quarter in the prior year, the company posted $1.32 earnings per share. The business’s revenue for the quarter was up 6.2% on a year-over-year basis. Pool updated its FY 2026 guidance to 10.870-11.170 EPS.

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

• Reported a solid Q1 with net sales +6%, operating income +7%, a 10 bps operating margin expansion and EPS of $1.45, while management confirmed full‑year diluted EPS guidance of $10.87–$11.17.
• Category strength included chemicals +8% (driven by proprietary/private‑label lines), equipment +7% and building materials +5%, and digital penetration rose as Pool360 reached 13% of net sales—supporting margin and share gains.
• Capital allocation remained disciplined: the company repurchased ~$64M of stock in Q1 with ~$271M remaining authorizations, maintained a targeted measured expansion (only five new sales centers expected) and reiterated expense‑moderation plans to drive leverage.
• Inventory rose to $1.7 billion (up 14% YoY) due to early buys, new products and stocking, contributing to higher seasonal debt (~$1.2B) and increased interest expense, which could pressure cash flow if demand softens.
• Management reiterated its thesis that growth will be driven by the ~5.5M installed in‑ground pools (maintenance/remodel/share capture) rather than a recovery in new pool builds, and expects low single‑digit same‑day sales growth with gross margin roughly in line with 2025.

Pool Price Performance

Shares of POOL traded down $1.84 during mid-day trading on Thursday, reaching $232.38. 454,239 shares of the company’s stock were exchanged, compared to its average volume of 799,202. Pool has a 52-week low of $195.49 and a 52-week high of $345.00. The company has a market cap of $8.53 billion, a price-to-earnings ratio of 21.46, a PEG ratio of 2.96 and a beta of 1.26. The company has a 50-day simple moving average of $218.02 and a two-hundred day simple moving average of $243.35. The company has a quick ratio of 0.59, a current ratio of 2.24 and a debt-to-equity ratio of 1.00.

Pool Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, March 26th. Stockholders of record on Thursday, March 12th were paid a dividend of $1.25 per share. This represents a $5.00 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend was Thursday, March 12th. Pool’s payout ratio is 46.13%.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on POOL shares. Weiss Ratings reissued a “sell (d+)” rating on shares of Pool in a research note on Monday, December 29th. Robert W. Baird cut their price objective on shares of Pool from $320.00 to $300.00 and set an “outperform” rating on the stock in a research report on Friday, February 20th. The Goldman Sachs Group reduced their price target on shares of Pool from $360.00 to $310.00 and set a “buy” rating for the company in a research report on Tuesday, January 13th. Deutsche Bank Aktiengesellschaft set a $246.00 price target on Pool in a research note on Friday, February 20th. Finally, Stifel Nicolaus lowered their price target on shares of Pool from $240.00 to $232.00 and set a “hold” rating on the stock in a research report on Monday, February 23rd. Five investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $273.67.

Insider Activity

In other Pool news, Director De La Mesa Manuel J. Perez bought 5,000 shares of the business’s stock in a transaction dated Friday, March 13th. The shares were acquired at an average price of $205.00 per share, with a total value of $1,025,000.00. Following the purchase, the director owned 110,108 shares in the company, valued at approximately $22,572,140. The trade was a 4.76% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Melanie M. Hart sold 2,750 shares of Pool stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $220.00, for a total transaction of $605,000.00. Following the transaction, the chief financial officer owned 18,039 shares in the company, valued at $3,968,580. The trade was a 13.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 3.00% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. CYBER HORNET ETFs LLC acquired a new position in shares of Pool during the second quarter worth about $30,000. MUFG Securities EMEA plc purchased a new position in Pool in the 2nd quarter worth approximately $33,000. Los Angeles Capital Management LLC purchased a new position in Pool in the 4th quarter worth approximately $38,000. Geneos Wealth Management Inc. grew its position in Pool by 164.4% in the first quarter. Geneos Wealth Management Inc. now owns 156 shares of the specialty retailer’s stock valued at $50,000 after acquiring an additional 97 shares in the last quarter. Finally, Quarry LP lifted its position in shares of Pool by 719.6% during the fourth quarter. Quarry LP now owns 459 shares of the specialty retailer’s stock worth $105,000 after purchasing an additional 403 shares in the last quarter. 98.99% of the stock is owned by hedge funds and other institutional investors.

Key Pool News

Here are the key news stories impacting Pool this week:

• Positive Sentiment: Q1 top-line and operating improvement — Net sales increased ~6% and operating income rose ~7%, driven by resilient maintenance demand and improving discretionary categories, showing the business is gaining seasonal traction. GlobeNewswire Release
• Positive Sentiment: EPS and adjusted EPS growth — Diluted EPS rose to $1.45 (+2% GAAP; +8% adjusted excluding ASU tax benefit), a beat on some estimates, which supports the case for steady profitability into peak season. Zacks Q1 Coverage
• Positive Sentiment: Guidance confirmed — Management confirmed FY26 guidance of $10.87–$11.17 EPS (near analyst consensus), which limits downside from surprise cuts and signals confidence in the seasonal outlook. Quiver Quant Summary
• Neutral Sentiment: Share-repurchase activity — Management has funded substantial buybacks (~$349M over 12 months), which is EPS-accretive but was partially financed with incremental debt; investors weigh buyback benefits versus higher leverage. Quiver Quant Summary
• Neutral Sentiment: Analyst backdrop mixed — Recent analyst price targets vary widely (median ~ $280) and at least one outlet reports lowered expectations from Bank of America, so broker reactions could keep the stock choppy. AmericanBankingNews
• Negative Sentiment: Margin pressure and inventory build — Gross margin compressed ~20 bps to 29.0% (seasonal mix and early-buy lower-margin sales), and inventories rose ~14% to $1.7B, which could weigh on near-term margin recovery and working-capital efficiency. GlobeNewswire Release
• Negative Sentiment: Higher leverage — Total debt rose by ~$222.6M to ~$1.2B to help fund repurchases, increasing interest expense and balance-sheet risk if demand or margins soften. Quiver Quant Summary

About Pool

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.