Pool Corp Q1 Earnings Miss Estimates Hit By Suppressed Results In Its Western Markets; Cuts FY23 EPS Outlook

  • Pool Corp POOL reported a first-quarter FY23 sales decline of 15% year-on-year to $1.20 billion, missing the consensus of $1.30 billion.
  • Base business net sales decreased 15.4%. Results were limited by unusually wet and cold weather in the western U.S., including in California and Arizona, two of its largest markets, where base business sales were down a combined 21% from last year.
  • Gross profit decreased 17% Y/Y to $369.8 million, while gross margin contracted 110 basis points Y/Y to 30.6%.
  • EPS of $2.58 missed the consensus of $3.25.
  • Selling and administrative expenses rose 6% Y/Y to $224 million.
  • Operating margin contracted 460 basis points to 12.1%, and the operating income for the quarter fell 38% to $145.8 million.
  • Cash and equivalents totaled $26.5 million as of March 31, 2023. Net cash provided by operating activities for the quarter was $103.2 million.
  • Adjusted EBITDA for the year was $160.3 million, a decrease of 35.6% Y/Y.
  • Outlook: Pool cut its FY23 2023 adjusted EPS outlook from $16.00 - $17.00 to $14.50 - $16.00, against the consensus of $16.31.
  • Price Action: POOL shares are trading lower by 2.54% at $330.08 on the last check Thursday.
Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsEquitiesNewsGuidanceMarketsGeneralBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!