POOL Corporation (POOL, Financial) has reiterated its earnings forecast for the full-year 2025, projecting a range between $11.10 and $11.60 per diluted share. This guidance incorporates tax benefits amounting to $0.10 so far this year.
As the company gears up for the upcoming swimming pool season, it emphasizes a strategic focus on bolstering its market-leading standing. Key initiatives include disciplined execution and continuous innovation within its customer-centric digital platform, POOL360. Additionally, POOL Corporation plans to expand its sales center network, with the aim of further supporting client business growth.
Under the leadership of CEO Arvan, the corporation remains committed to leveraging these strategies to drive industry advancement and enhance shareholder value.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for Pool Corp (POOL, Financial) is $346.69 with a high estimate of $400.00 and a low estimate of $295.00. The average target implies an upside of 12.09% from the current price of $309.31. More detailed estimate data can be found on the Pool Corp (POOL) Forecast page.
Based on the consensus recommendation from 14 brokerage firms, Pool Corp's (POOL, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Pool Corp (POOL, Financial) in one year is $357.11, suggesting a upside of 15.45% from the current price of $309.31. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Pool Corp (POOL) Summary page.
POOL Key Business Developments
Release Date: February 20, 2025
- Full Year Revenue: $5.3 billion, down 4% from 2023.
- Gross Margin: 29.7% for the year, slightly lower due to weaker product mix.
- Operating Income: $617 million with an operating margin of 11.6%.
- Operating Cash Flow: $659 million.
- Diluted EPS: $11.30 per share, including a $0.23 ASU tax benefit.
- Fourth Quarter Revenue: $988 million, down 2% year-over-year.
- Fourth Quarter Gross Margin: 29.4%, a 10 bps improvement from the previous year.
- Fourth Quarter Operating Income: $60.7 million with an operating margin of 6.1%.
- Fourth Quarter Diluted EPS: $0.98 per share, including a $0.01 ASU tax benefit.
- Florida Sales Growth: 12% growth in the fourth quarter.
- Horizon Net Sales Decline: 6% for the full year and 4% for the fourth quarter.
- Europe Sales Decline: 9% for the full year and 5% in the fourth quarter.
- Chemical Sales Growth: 2% for the year and 8% in the fourth quarter.
- Building Materials Sales Decline: 10% for the full year and 8% in the fourth quarter.
- Equipment Sales: Flat for the year, up 6% in the fourth quarter.
- Commercial Pool Product Sales Growth: 9% for both the full year and fourth quarter.
- Pinch A Penny Retail Sales Growth: 4% for the year and 15% in the fourth quarter.
- POOL360 Orders: Increased to 12.5% in the fourth quarter from 11% last year.
- New Locations: 10 new sales centers and 2 acquired, totaling almost 450 sales centers.
- Pinch A Penny Network: Added 11 new stores, totaling 295 stores.
- Inventory Reduction: $76 million reduction in inventory.
- Total Debt Reduction: $103 million, ending at $950 million.
- Shareholder Returns: $483 million returned through dividends and share repurchases.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Pool Corp (POOL, Financial) reported full-year revenue of $5.3 billion, slightly above their latest guidance, showcasing strong team execution.
- The company achieved a gross margin of 29.7% for 2024, indicating effective management despite a weaker product mix.
- POOL360 ecosystem and tools have shown significant traction, contributing to increased private label chemical sales.
- The company opened 10 new sales centers and added two through acquisitions, expanding their footprint to almost 450 sales centers.
- Commercial pool product sales grew by 9% for both the full year and the fourth quarter, highlighting successful investments in capabilities and market share growth.
Negative Points
- New pool construction declined by approximately 15% in 2024, with a 50% drop from the pandemic-driven peak, impacting overall sales.
- Fourth quarter sales were down 2% year-over-year, reflecting ongoing challenges in construction and renovation activities.
- Operating income for the fourth quarter decreased to $60.7 million from $79 million in the prior year, with a reduced operating margin of 6.1%.
- The company faces continued macroeconomic pressures, including high interest rates and inflation, which are expected to impact 2025 sales trends.
- Sales in Europe declined by 9% for the full year, indicating regional challenges and a need for improvement in international markets.
