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Pool Corp (POOL) Q2 Earnings & Revenues Top Estimates, Stock Up
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Pool Corporation (POOL - Free Report) reported second-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line declined from the prior-year quarter's figure.
Following the results, the company’s shares increased 10% during trading hours on Jul 25. Positive Investor sentiments were witnessed as the company increased the quarterly dividend by 9% to $1.20 per share and raised the repurchase authorization to $600 million, demonstrating its commitment to enhancing shareholders’ returns. Despite challenging operating conditions, the Zacks Rank #5 (Strong Sell) company returned $173 million to shareholders through dividends and share repurchases so far this year.
Earnings & Revenues Discussion
Pool Corporation Price, Consensus and EPS Surprise
During the second quarter, the company reported adjusted earnings per share (EPS) of $4.98, beating the Zacks Consensus Estimate of $4.90. In the prior-year quarter, the company reported an adjusted EPS of $5.89.
Quarterly net revenues of $1.77 billion beat the consensus mark of $1.74 billion. The top line declined 4.7% year over year. Lower consumer spending on discretionary items and dismal building materials product sales added to the downside.
Operating Highlights & Expenses
During the second quarter, the cost of sales came in at $1.24 billion compared with $1.29 billion reported in the prior-year quarter. Our estimate for the cost of sales was $1.29 billion.
During the quarter, gross profits (as a percentage of net sales) came in at 30%, down 60 basis points (bps) from 30.6% reported in the year-ago quarter. Our estimate for the metric was 31.2%.
During the second quarter, operating income declined 17% year over year to $271.5 million. Our estimate for operating income was $326 million. The operating margin came in at 15.3%, down 230 bps from the prior-year quarter’s level. Our estimate for operating margin was 17.4%.
Selling and administrative expenses increased 7.4% year over year to $258.7 million. Increased spending on network expansion and technology initiatives added to the upside. Our estimate for the metric was $259.2 million.
Net income during the quarter totaled $192.4 million compared with $232.3 million reported in the year-ago quarter. Our estimate for net income was $236.3 million.
Balance Sheet
As of Jun 30, 2024, the company’s cash and cash equivalents amounted to $96.9 million compared with $53.2 million as of Jun 30, 2023. During the quarter, its net long-term debt amounted to $1.07 billion compared with $1.15 billion reported in the year-ago quarter.
Goodwill during the quarter came in at $699.7 million compared with $699.9 million reported in the prior-year quarter.
For the six months ended Jun 30, 2024, net cash provided by operating activities amounted to $172.1 million compared with $376.8 million reported in the prior-year period.
2024 Guidance
For 2024, Pool Corp expects adjusted EPS in the range of $11.05-$11.45.
Peer Releases
Carnival Corporation & plc (CCL - Free Report) reported impressive second-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside was primarily backed by sustained demand strength and increased booking volumes. The management expects net yields to exceed 10% and drive double-digit returns on invested capital. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The quarter’s passenger ticket revenues amounted to $3.8 billion, up from $3.1 billion reported in the prior-year quarter. CCL reported strong booking momentum for 2025, with record volumes surpassing 2024 levels in price and occupancy. It reported strength in pricing for the North America and Australia and Europe segments for the third and the fourth quarter of 2024 on a year-over-year basis. Its efforts to extend the booking curve and leverage favorable pricing trends resulted in record cumulative bookings for the remainder of 2024, with occupancy rates above 2023 levels.
Mattel, Inc. (MAT - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top line missed the consensus estimate for the third straight quarter.
The company experienced robust bottom-line performance, propelled mainly by significant gross margin expansion and growth in adjusted EBITDA. MAT is well positioned for the second half with new product innovation and increased retail support. The company is in a strong financial position to execute its strategy to expand its IP-driven toy business and expand entertainment offerings. For 2024, management continues to expect net sales to be comparable with the prior year at cc. It also anticipates 2024 adjusted EPS to be between $1.35 and $1.45 compared with $1.23 in 2023.
American Outdoor Brands, Inc. (AOUT - Free Report) reported mixed fourth-quarter fiscal 2024 (ended Apr 30, 2024) results. It reported break-even earnings, which missed the Zacks Consensus Estimate, while net sales topped the same. The top line rose year over year, but the bottom line declined.
The quarterly results reflect growth in its outdoor lifestyle and shooting sports categories on the back of new product launches across its several brands. The footprint expansion in Canada also bodes well for the company, allowing it to offer outdoor brands to Canadian consumers. The bottom line was negatively impacted by the amortization of tariff and freight costs, higher promotional product discounts and an immaterial adjustment to a tariff drawback claim submitted in the fiscal 2022.
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Pool Corp (POOL) Q2 Earnings & Revenues Top Estimates, Stock Up
Pool Corporation (POOL - Free Report) reported second-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line declined from the prior-year quarter's figure.
Following the results, the company’s shares increased 10% during trading hours on Jul 25. Positive Investor sentiments were witnessed as the company increased the quarterly dividend by 9% to $1.20 per share and raised the repurchase authorization to $600 million, demonstrating its commitment to enhancing shareholders’ returns. Despite challenging operating conditions, the Zacks Rank #5 (Strong Sell) company returned $173 million to shareholders through dividends and share repurchases so far this year.
Earnings & Revenues Discussion
Pool Corporation Price, Consensus and EPS Surprise
Pool Corporation price-consensus-eps-surprise-chart | Pool Corporation Quote
During the second quarter, the company reported adjusted earnings per share (EPS) of $4.98, beating the Zacks Consensus Estimate of $4.90. In the prior-year quarter, the company reported an adjusted EPS of $5.89.
Quarterly net revenues of $1.77 billion beat the consensus mark of $1.74 billion. The top line declined 4.7% year over year. Lower consumer spending on discretionary items and dismal building materials product sales added to the downside.
Operating Highlights & Expenses
During the second quarter, the cost of sales came in at $1.24 billion compared with $1.29 billion reported in the prior-year quarter. Our estimate for the cost of sales was $1.29 billion.
During the quarter, gross profits (as a percentage of net sales) came in at 30%, down 60 basis points (bps) from 30.6% reported in the year-ago quarter. Our estimate for the metric was 31.2%.
During the second quarter, operating income declined 17% year over year to $271.5 million. Our estimate for operating income was $326 million. The operating margin came in at 15.3%, down 230 bps from the prior-year quarter’s level. Our estimate for operating margin was 17.4%.
Selling and administrative expenses increased 7.4% year over year to $258.7 million. Increased spending on network expansion and technology initiatives added to the upside. Our estimate for the metric was $259.2 million.
Net income during the quarter totaled $192.4 million compared with $232.3 million reported in the year-ago quarter. Our estimate for net income was $236.3 million.
Balance Sheet
As of Jun 30, 2024, the company’s cash and cash equivalents amounted to $96.9 million compared with $53.2 million as of Jun 30, 2023. During the quarter, its net long-term debt amounted to $1.07 billion compared with $1.15 billion reported in the year-ago quarter.
Goodwill during the quarter came in at $699.7 million compared with $699.9 million reported in the prior-year quarter.
For the six months ended Jun 30, 2024, net cash provided by operating activities amounted to $172.1 million compared with $376.8 million reported in the prior-year period.
2024 Guidance
For 2024, Pool Corp expects adjusted EPS in the range of $11.05-$11.45.
Peer Releases
Carnival Corporation & plc (CCL - Free Report) reported impressive second-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside was primarily backed by sustained demand strength and increased booking volumes. The management expects net yields to exceed 10% and drive double-digit returns on invested capital. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The quarter’s passenger ticket revenues amounted to $3.8 billion, up from $3.1 billion reported in the prior-year quarter. CCL reported strong booking momentum for 2025, with record volumes surpassing 2024 levels in price and occupancy. It reported strength in pricing for the North America and Australia and Europe segments for the third and the fourth quarter of 2024 on a year-over-year basis. Its efforts to extend the booking curve and leverage favorable pricing trends resulted in record cumulative bookings for the remainder of 2024, with occupancy rates above 2023 levels.
Mattel, Inc. (MAT - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top line missed the consensus estimate for the third straight quarter.
The company experienced robust bottom-line performance, propelled mainly by significant gross margin expansion and growth in adjusted EBITDA. MAT is well positioned for the second half with new product innovation and increased retail support. The company is in a strong financial position to execute its strategy to expand its IP-driven toy business and expand entertainment offerings. For 2024, management continues to expect net sales to be comparable with the prior year at cc. It also anticipates 2024 adjusted EPS to be between $1.35 and $1.45 compared with $1.23 in 2023.
American Outdoor Brands, Inc. (AOUT - Free Report) reported mixed fourth-quarter fiscal 2024 (ended Apr 30, 2024) results. It reported break-even earnings, which missed the Zacks Consensus Estimate, while net sales topped the same. The top line rose year over year, but the bottom line declined.
The quarterly results reflect growth in its outdoor lifestyle and shooting sports categories on the back of new product launches across its several brands. The footprint expansion in Canada also bodes well for the company, allowing it to offer outdoor brands to Canadian consumers. The bottom line was negatively impacted by the amortization of tariff and freight costs, higher promotional product discounts and an immaterial adjustment to a tariff drawback claim submitted in the fiscal 2022.