Pool Corp Clocks 6% Sales Growth In Q4; Notes Margin Pressure

Pool Corp POOL reported fourth-quarter FY22 sales growth of 6% year-on-year to $1.09 billion, missing the consensus of $1.15 billion.
Base business net sales increased 1%. Net sales benefited 8% from inflationary product cost increases versus 10% last year.
Gross profit decreased 2% Y/Y to $315.7 million, while gross margin contracted 230 basis points Y/Y to 28.8%.
EPS was $1.82 versus $2.65 a year ago, while adjusted EPS was $1.79 against $2.30 prior year.
Selling and administrative expenses rose 7.2% Y/Y to $208.4 million.
Operating margin contracted 250 basis points to 9.8%, and the operating income for the quarter fell 16% to $107.3 million.
Cash and equivalents totaled $45.6 million as of Dec 31, 2022. Net cash provided by operating activities for the year grew to $484.8 million from $313.49 million a year ago.
Adjusted EBITDA for the year was $1.07 billion, an increase of 23.4% Y/Y.
Outlook: Pool sees FY23 2023 EPS of $16.03 - $17.03, including an estimated $0.03 tax benefit. It sees Adjusted EPS of $16.00-$17.00.
Price Action: POOL shares are trading higher by 2.02% at $392.33 on the last check Thursday.

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