Pool (NASDAQ:POOL) Posts Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Pool (NASDAQ:POOL) posted its quarterly earnings data on Thursday. The specialty retailer reported $5.38 earnings per share for the quarter, beating analysts’ consensus estimates of $5.33 by $0.05, Zacks reports. Pool had a return on equity of 32.37% and a net margin of 7.57%.The company had revenue of $1.82 billion during the quarter, compared to analyst estimates of $1.82 billion. During the same quarter last year, the company earned $5.17 EPS. The firm’s revenue for the quarter was up 2.2% on a year-over-year basis. Pool updated its FY 2026 guidance to 10.660-10.960 EPS.

Here are the key takeaways from Pool’s conference call:

• Pool reported Q2 net sales up 2% to $1.8 billion, with strength in recurring maintenance and building materials offsetting softer new construction and discretionary demand. Management said the business remains resilient, and Europe delivered 11% sales growth.
• Profitability was pressured by higher inbound freight costs and an unfavorable customer mix, which pushed gross margin down 30 basis points to 29.7%. Management said pricing and supply-chain actions are underway, but the freight pressure may not be fully recovered immediately.
• Despite the margin headwind, Pool held expense growth to 1% on an adjusted basis in Q2 and delivered adjusted EPS of $5.38, up 4% excluding one-time CEO transition costs. The company also reiterated full-year adjusted EPS guidance of $10.87 to $11.17.
• New CEO John Watwood outlined four priorities: sales excellence, pricing and supply-chain discipline, operational execution, and disciplined M&A. He emphasized a focus on share gains, tighter branch execution, and selective tuck-in acquisitions rather than major near-term expansion spending.
• Management highlighted continued traction in its digital and proprietary offerings, with POOL360 reaching 18% of sales and greenfield locations still improving as they mature. The company said it expects strong cash generation and remains active on shareholder returns, including dividends and buybacks.

Pool Stock Up 0.7%

Shares of POOL stock traded up $1.39 during mid-day trading on Thursday, hitting $197.58. The stock had a trading volume of 758,478 shares, compared to its average volume of 893,184. Pool has a 12-month low of $172.68 and a 12-month high of $345.00. The firm’s 50-day moving average is $195.77 and its two-hundred day moving average is $216.82. The firm has a market capitalization of $7.20 billion, a P/E ratio of 18.12, a price-to-earnings-growth ratio of 2.53 and a beta of 1.05. The company has a debt-to-equity ratio of 1.09, a current ratio of 1.87 and a quick ratio of 0.55.

Pool Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, May 28th. Shareholders of record on Thursday, May 14th were issued a dividend of $1.30 per share. This represents a $5.20 annualized dividend and a yield of 2.6%. The ex-dividend date was Thursday, May 14th. This is an increase from Pool’s previous quarterly dividend of $1.25. Pool’s dividend payout ratio (DPR) is 47.84%.

Analyst Ratings Changes

POOL has been the topic of a number of analyst reports. Wall Street Zen upgraded shares of Pool from a “sell” rating to a “hold” rating in a research note on Monday, April 27th. Wells Fargo & Company lowered their price objective on Pool from $230.00 to $215.00 and set an “equal weight” rating on the stock in a research report on Wednesday, April 8th. Weiss Ratings downgraded shares of Pool from a “hold (c-)” rating to a “sell (d+)” rating in a report on Thursday, May 14th. Stifel Nicolaus raised their price objective on Pool from $210.00 to $235.00 and gave the stock a “hold” rating in a research note on Monday, July 6th. Finally, Zacks Research upgraded shares of Pool from a “strong sell” rating to a “hold” rating in a research note on Monday, April 27th. Four equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $262.00.

Insider Buying and Selling at Pool

In related news, Director James D. Hope bought 464 shares of the company’s stock in a transaction on Thursday, May 7th. The shares were acquired at an average price of $194.41 per share, with a total value of $90,206.24. Following the transaction, the director owned 3,678 shares of the company’s stock, valued at $715,039.98. The trade was a 14.44% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director David G. Whalen purchased 525 shares of Pool stock in a transaction dated Friday, May 8th. The stock was bought at an average cost of $190.44 per share, with a total value of $99,981.00. Following the completion of the transaction, the director owned 8,936 shares in the company, valued at approximately $1,701,771.84. This represents a 6.24% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders purchased 21,989 shares of company stock valued at $4,042,747. 3.00% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Pool

Hedge funds have recently made changes to their positions in the company. T. Rowe Price Investment Management Inc. lifted its holdings in shares of Pool by 2,435.4% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 1,290,958 shares of the specialty retailer’s stock worth $295,307,000 after purchasing an additional 1,240,041 shares during the period. Wellington Management Group LLP boosted its holdings in shares of Pool by 16.2% in the 3rd quarter. Wellington Management Group LLP now owns 2,563,373 shares of the specialty retailer’s stock valued at $794,825,000 after acquiring an additional 357,643 shares during the last quarter. Southpoint Capital Advisors LP purchased a new position in Pool during the fourth quarter valued at approximately $68,625,000. Adage Capital Partners GP L.L.C. grew its stake in shares of Pool by 254.6% during the 4th quarter. Adage Capital Partners GP L.L.C. now owns 339,716 shares of the specialty retailer’s stock worth $77,710,000 after purchasing an additional 243,907 shares during the period. Finally, Worldquant Millennium Advisors LLC boosted its holdings in Pool by 1,301.7% during the second quarter. Worldquant Millennium Advisors LLC now owns 194,880 shares of the specialty retailer’s stock worth $56,804,000 after buying an additional 180,977 shares in the last quarter. 98.99% of the stock is owned by institutional investors and hedge funds.

Pool announced that its Board of Directors has authorized a share buyback plan on Wednesday, April 29th that permits the company to buyback $600.00 million in shares. This buyback authorization permits the specialty retailer to purchase up to 7.8% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s leadership believes its stock is undervalued.

Pool News Roundup

Here are the key news stories impacting Pool this week:

• Positive Sentiment: Pool reported Q2 adjusted EPS of $5.38, topping estimates, with revenue of $1.82 billion matching consensus and sales up 2% year over year. Management also said maintenance demand remained resilient and building materials improved. Article Title
• Positive Sentiment: Excluding CEO transition costs, Pool said it is confirming its prior full-year earnings outlook, which suggests underlying business trends are holding up better than the headline GAAP guidance implies. Article Title
• Neutral Sentiment: William Blair reiterated a Hold rating, saying the results were largely in line and that margin trends were mixed, pointing to a balanced risk-reward setup rather than a clear upside catalyst. Article Title
• Negative Sentiment: Investors appear focused on weaker headline annual EPS guidance of $10.66 to $10.96, which came in below the consensus estimate of about $11.08 and may be weighing on sentiment despite the earnings beat. Article Title
• Negative Sentiment: One recent commentary titled “Bouncing Along The Bottom” reflects continued concern that Pool’s business may be near a trough rather than entering a strong recovery. Article Title

About Pool

Pool Corporation is a leading wholesale distributor of swimming pool supplies, equipment, and related outdoor living products. Headquartered in Covington, Louisiana, the company serves a diverse customer base that includes service professionals, independent retailers, high-volume builders, and national retail chains. Pool Corporation’s extensive branch network enables it to maintain strong local customer relationships while leveraging its scale to source products efficiently from manufacturers around the world.

The company’s product portfolio spans pool and spa chemicals, water treatment equipment, pumps, filters, heaters, automation and control systems, liners, safety covers, and cleaning accessories.