Pool Corporation Initiated With Outperform at RBC Capital
RBC Capital initiated coverage on Pool Corporation (NASDAQ:POOL) with an Outperform rating and a $408 price target.
The analysts said they’re drawn to the company's potential for long-term growth as the leading wholesale distributor in an industry that benefits from migration to warmer climates where there is a higher tendency for pool ownership and backyard living features, as well as spending on technology-enabled pool content.
The company's growth mainly comes from recurring revenue generated by maintenance and minor repair work on a continually increasing number of installed US pools, as well as remodeling and retrofitting work, given that the average US pool is 22 years old.
The company aims to achieve a 6%-9% organic revenue CAGR in the long run, which aligns with its eight-year historical trend (2012-2019), except for the extraordinary growth it experienced in 2020-22 due to the pandemic. The growth drivers include the increase in the overall number of installed pools, favorable pricing and product mix from higher-value technology pool content, gaining market share, opening new sales centers, and expanding the product line.
| Symbol | Price | %chg |
|---|---|---|
| 047050.KS | 51700 | 0.97 |
| HEXA.JK | 5250 | 0.95 |
| CSAP.JK | 250 | 2.4 |
| TIRA.JK | 1785 | 0 |
Pool Corporation (NASDAQ:POOL) Showcases Strong Financial Performance in Q3 Earnings
- Earnings Per Share (EPS) of $3.28, surpassing estimates and indicating a robust financial performance.
- Revenue Generation of approximately $1.43 billion, exceeding expectations and showcasing the company's market strength.
- Financial Health Indicators such as a price-to-earnings (P/E) ratio of 32.06 and a debt-to-equity ratio of 0.87, reflecting solid financial foundation and market position.
Pool Corporation (NASDAQ:POOL) is a leading distributor of swimming pool supplies, equipment, and related leisure products. The company operates within the Zacks Leisure and Recreation Products industry, competing with other firms in the sector. On October 24, 2024, POOL reported its third-quarter earnings, showcasing strong financial performance.
POOL reported earnings per share (EPS) of $3.28, surpassing the estimated $3.15. This marks a 3.49% surprise over the expected figures, as highlighted by Zacks. However, this EPS is slightly lower than the $3.50 reported in the same quarter last year. Despite this, POOL has exceeded consensus EPS estimates three times in the past four quarters.
In terms of revenue, POOL generated approximately $1.43 billion, exceeding the estimated $1.40 billion. This represents a 2.02% surprise over the Zacks Consensus Estimate. However, it is a slight decrease from the $1.47 billion reported in the same period last year. POOL has outperformed consensus revenue estimates twice in the last four quarters.
POOL's financial metrics indicate a strong market position. The company has a price-to-earnings (P/E) ratio of 32.06, suggesting investors are willing to pay $32.06 for every dollar of earnings. The price-to-sales ratio is 2.71, and the enterprise value to sales ratio is 2.93, reflecting the company's valuation relative to its sales.
The company's financial health is further supported by a debt-to-equity ratio of 0.87, indicating a moderate level of debt. Additionally, a current ratio of 2.39 shows POOL's strong ability to cover short-term liabilities with short-term assets. These metrics highlight POOL's solid financial foundation and its ability to navigate market challenges effectively.
Pool Corporation (NASDAQ:POOL) Showcases Strong Financial Performance in Q3 Earnings
- Earnings Per Share (EPS) of $3.28, surpassing estimates and indicating a robust financial performance.
- Revenue Generation of approximately $1.43 billion, exceeding expectations and showcasing the company's market strength.
- Financial Health Indicators such as a price-to-earnings (P/E) ratio of 32.06 and a debt-to-equity ratio of 0.87, reflecting solid financial foundation and market position.
Pool Corporation (NASDAQ:POOL) is a leading distributor of swimming pool supplies, equipment, and related leisure products. The company operates within the Zacks Leisure and Recreation Products industry, competing with other firms in the sector. On October 24, 2024, POOL reported its third-quarter earnings, showcasing strong financial performance.
POOL reported earnings per share (EPS) of $3.28, surpassing the estimated $3.15. This marks a 3.49% surprise over the expected figures, as highlighted by Zacks. However, this EPS is slightly lower than the $3.50 reported in the same quarter last year. Despite this, POOL has exceeded consensus EPS estimates three times in the past four quarters.
In terms of revenue, POOL generated approximately $1.43 billion, exceeding the estimated $1.40 billion. This represents a 2.02% surprise over the Zacks Consensus Estimate. However, it is a slight decrease from the $1.47 billion reported in the same period last year. POOL has outperformed consensus revenue estimates twice in the last four quarters.
POOL's financial metrics indicate a strong market position. The company has a price-to-earnings (P/E) ratio of 32.06, suggesting investors are willing to pay $32.06 for every dollar of earnings. The price-to-sales ratio is 2.71, and the enterprise value to sales ratio is 2.93, reflecting the company's valuation relative to its sales.
The company's financial health is further supported by a debt-to-equity ratio of 0.87, indicating a moderate level of debt. Additionally, a current ratio of 2.39 shows POOL's strong ability to cover short-term liabilities with short-term assets. These metrics highlight POOL's solid financial foundation and its ability to navigate market challenges effectively.
Pool Corp Price Target Boosted at Stifel
Stifel analysts increased their price target for Pool Corp (NASDAQ:POOL) to $335 from $310, while maintaining a Hold rating on the stock. The analysts highlighted Pool Corp's strong positioning in the U.S. pool market, with a 37% market share in wholesale distribution, and its significant resources to further solidify its leadership.
However, they cautioned that while expectations have been adjusted to reflect fiscal 2024 challenges, the company's current valuation leaves little room for error, particularly given a potentially muted recovery and elevated expenses.
The analysts believe that Pool Corp's stock is likely to remain range-bound, influenced by interest rate sentiment, with stability in 2024 being crucial for sustained investor interest.
Pool Corp Price Target Boosted at Stifel
Stifel analysts increased their price target for Pool Corp (NASDAQ:POOL) to $335 from $310, while maintaining a Hold rating on the stock. The analysts highlighted Pool Corp's strong positioning in the U.S. pool market, with a 37% market share in wholesale distribution, and its significant resources to further solidify its leadership.
However, they cautioned that while expectations have been adjusted to reflect fiscal 2024 challenges, the company's current valuation leaves little room for error, particularly given a potentially muted recovery and elevated expenses.
The analysts believe that Pool Corp's stock is likely to remain range-bound, influenced by interest rate sentiment, with stability in 2024 being crucial for sustained investor interest.
Pool Corporation Shares Drop 10% on Revised 2024 Earnings Guidance
Pool Corporation (NASDAQ:POOL) experienced a significant drop of over 10% intra-day today following a revision of its 2024 earnings guidance due to reduced demand during the swimming pool season.
Recognizing the critical importance of the second quarter for its annual performance, Pool adjusted its expectations for both the second quarter and the entire 2024 fiscal year. Consequently, the company has lowered its projected diluted EPS range for the full year to $11.04 to $11.44 per share, down from the previous range of $13.19 to $14.19.
Peter D. Arvan, CEO of Pool, highlighted that recent data on pool permits indicates persistently weak demand for new pool construction. As the peak selling season draws to a close, the company now forecasts a 15% to 20% decline in new pool construction activity for the year, with remodel activity potentially decreasing by up to 15%.
Pool Corporation Shares Drop 10% on Revised 2024 Earnings Guidance
Pool Corporation (NASDAQ:POOL) experienced a significant drop of over 10% intra-day today following a revision of its 2024 earnings guidance due to reduced demand during the swimming pool season.
Recognizing the critical importance of the second quarter for its annual performance, Pool adjusted its expectations for both the second quarter and the entire 2024 fiscal year. Consequently, the company has lowered its projected diluted EPS range for the full year to $11.04 to $11.44 per share, down from the previous range of $13.19 to $14.19.
Peter D. Arvan, CEO of Pool, highlighted that recent data on pool permits indicates persistently weak demand for new pool construction. As the peak selling season draws to a close, the company now forecasts a 15% to 20% decline in new pool construction activity for the year, with remodel activity potentially decreasing by up to 15%.
