Pool Corp Q1 Earnings Miss Estimates Hit By Suppressed Results In Its Western Markets; Cuts FY23 EPS Outlook - Pool (NASDAQ:POOL)

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.