Pool (NASDAQ:POOL) Issues Quarterly Earnings Results

Pool (NASDAQ:POOL) posted its quarterly earnings data on Thursday. The specialty retailer reported $5.38 EPS for the quarter, beating analysts’ consensus estimates of $5.33 by $0.05, Zacks reports. The company had revenue of $1.82 billion for the quarter, compared to analyst estimates of $1.82 billion. Pool had a net margin of 7.40% and a return on equity of 32.74%. The company’s quarterly revenue was up 2.2% on a year-over-year basis. During the same period in the prior year, the firm posted $5.17 EPS. 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 Trading Up 0.2%

Shares of Pool stock opened at $183.77 on Friday. The company has a debt-to-equity ratio of 1.05, a quick ratio of 0.55 and a current ratio of 2.67. Pool has a 52 week low of $172.68 and a 52 week high of $336.15. The stock has a 50 day moving average price of $196.10 and a two-hundred day moving average price of $216.26. The stock has a market capitalization of $6.70 billion, a PE ratio of 16.91, a price-to-earnings-growth ratio of 2.36 and a beta of 1.05.

Pool Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, May 28th. Shareholders of record on Thursday, May 14th were issued a $1.30 dividend. The ex-dividend date was Thursday, May 14th. This is an increase from Pool’s previous quarterly dividend of $1.25. This represents a $5.20 annualized dividend and a yield of 2.8%. Pool’s dividend payout ratio is currently 47.84%.

Pool News Summary

Here are the key news stories impacting Pool this week:

• Positive Sentiment: Pool reported second-quarter revenue of about $1.82 billion, up 2% year over year, with adjusted EPS of $5.38 beating estimates. The company also said recurring maintenance demand and building materials growth helped offset softness elsewhere. Article Title
• Positive Sentiment: Management confirmed its annual earnings outlook excluding CEO transition costs, suggesting the core business remains stable despite a mixed quarter. Article Title
• Neutral Sentiment: Analyst commentary has been mixed-to-neutral, with at least one firm maintaining a Hold rating after the earnings release, reinforcing a wait-and-see stance. Article Title
• Negative Sentiment: Gross margin declined and operating income fell, with management pointing to higher freight costs, customer mix, muted discretionary demand, and weak new pool construction as headwinds. Article Title
• Negative Sentiment: The company’s FY2026 EPS guidance of $10.66 to $10.96 came in below the market’s expectation, which may be weighing on investor sentiment. Article Title

Insider Transactions at Pool

In other news, Director John E. Stokely bought 1,000 shares of the stock in a transaction dated Thursday, May 7th. The shares were bought at an average cost of $193.06 per share, with a total value of $193,060.00. Following the completion of the transaction, the director directly owned 16,230 shares of the company’s stock, valued at $3,133,363.80. This trade represents a 6.57% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director De La Mesa Manuel J. Perez bought 10,000 shares of the business’s stock in a transaction that occurred on Wednesday, May 13th. The stock was purchased at an average price of $175.95 per share, for a total transaction of $1,759,500.00. Following the completion of the acquisition, the director owned 40,108 shares in the company, valued at $7,057,002.60. This represents a 33.21% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders have bought 21,989 shares of company stock worth $4,042,747. Insiders own 3.00% of the company’s stock.

Institutional Investors Weigh In On Pool

Hedge funds and other institutional investors have recently made changes to their positions in the business. CYBER HORNET ETFs LLC acquired a new position in Pool during the 2nd quarter valued at about $30,000. MUFG Securities EMEA plc purchased a new stake in shares of Pool in the second quarter valued at about $33,000. Los Angeles Capital Management LLC bought a new stake in Pool in the 4th quarter worth about $38,000. Geneos Wealth Management Inc. boosted its stake in shares of Pool by 164.4% in the 1st quarter. Geneos Wealth Management Inc. now owns 156 shares of the specialty retailer’s stock worth $50,000 after buying an additional 97 shares during the last quarter. Finally, Quarry LP grew its holdings in shares of Pool by 719.6% in the fourth quarter. Quarry LP now owns 459 shares of the specialty retailer’s stock valued at $105,000 after acquiring an additional 403 shares in the last quarter. 98.99% of the stock is owned by institutional investors.

Pool declared that its Board of Directors has initiated a stock repurchase program on Wednesday, April 29th that permits the company to repurchase $600.00 million in outstanding shares. This repurchase authorization permits the specialty retailer to buy up to 7.8% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on POOL. Deutsche Bank Aktiengesellschaft set a $185.00 price objective on Pool in a research note on Friday. Weiss Ratings lowered Pool from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Thursday, May 14th. Wells Fargo & Company cut their price target on Pool from $230.00 to $215.00 and set an “equal weight” rating on the stock in a report on Wednesday, April 8th. Bank of America reduced their price objective on shares of Pool from $226.00 to $206.00 and set an “underperform” rating for the company in a research report on Monday, July 20th. Finally, Robert W. Baird set a $260.00 price objective on shares of Pool in a research note on Friday. Five analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Pool currently has a consensus rating of “Hold” and an average target price of $235.67.

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.