Pool Corp Reports Solid Q2 Results; Lifts FY21 Outlook

Pool Corp POOL reported second-quarter FY21 net revenue growth of 40% year-on-year to $1.79 billion, beating the analyst consensus of $1.73 billion.
Revenue growth was supported by households continuing to invest in outdoor living spaces, contributing to the demand.
Gross profit increased 48% Y/Y to $551.7 million, while Gross margin rose 170 basis points Y/Y to 30.9%.
Selling and administrative expenses rose 27% Y/Y to $213.1 million.
The operating margin was 18.9%, and the operating income for the quarter rose 64% to $338.6 million.
Cash and equivalents totaled $58.5 million as of June 30, 2021.
EPS of $6.37 beat the analyst consensus of $5.48.
"Through our supply chain management discipline and our capacity creation initiatives, we yielded exceptional improvement in both gross margin and operating margin during the quarter," said CEO Peter D. Arvan.
Outlook: Pool raised FY21 EPS to $13.75 - $14.25, including the impact of year-to-date tax benefits of $0.29, versus the previous view of $11.85 - $12.60, including $0.10 tax benefit in Q1. Analysts estimate the company to report EPS of $12.42.
Price action: POOL shares are trading lower by 1.96% at $448.72 on the last check Thursday.

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