Pool Corp shares rise 3% as Q1 revenue in-line despite profit miss

Published 24/04/2025, 12:46
Pool Corp shares rise 3% as Q1 revenue in-line despite profit miss

COVINGTON, La. -On Thursday, Pool Corporation (NASDAQ:POOL) reported first quarter results that showed resilience in a challenging environment, with revenue meeting analyst expectations despite earnings falling short. The company also reaffirmed its full-year guidance.

Pool Corp shares rose 3.13% in oremarket trading following the earnings release.

The world’s largest wholesale distributor of swimming pool supplies reported Q1 revenue of $1.1 billion, in line with analyst estimates. However, adjusted earnings per share came in at $1.32, missing the $1.48 consensus forecast.

Revenue declined 4% YoY, or 2% on a same-selling day basis, which CEO Peter D. Arvan noted was consistent with trends seen in Q4 2024. Chemical volumes grew 1%, with double-digit growth in private-label products.

"Execution of our long-term strategic initiatives and organic growth investments contributed positively to our performance this quarter," said Arvan. He highlighted the addition of two new sales centers and further expansion of Pool Corp’s digital platform.

Gross margin decreased 100 basis points to 29.2%, though the company noted this was 10 basis points higher than last year when excluding a one-time benefit in Q1 2024.

Pool Corp reaffirmed its full-year 2025 earnings guidance of $11.10 to $11.60 per diluted share, which includes a $0.10 tax benefit. This outlook is below the current analyst consensus of $12.27 per share.

"As we approach the swimming pool season, we remain focused on strengthening our industry-leading position through disciplined execution," Arvan added.

The company’s inventory balance decreased 2% YoY to $1.5 billion as Pool Corp rightsized inventory ahead of peak season. Net cash provided by operations was $27.2 million in Q1, down from $145.4 million in the same period last year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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