Why Pool Corp Shares Are Sliding Today

Pool Corp POOL reported Q3 FY23 results, with sales declining by 9% Y/Y to $1.474 billion, beating the consensus of $1.460 billion.

EPS of $3.51, down 27% Y/Y, beating the consensus of $3.47.

Gross profit decreased 15% Y/Y to $428.7 million, with margin contracting 210 basis points Y/Y to 29.1%.

The company stated that maintenance activities remained stable, denoting steady demand for non-discretionary products, while pool construction-related activities remained weaker as challenging macroeconomic factors continued to weigh heavily on major project consumer spending. 

As of September 30, 2023, the total debt outstanding was $1.0 billion. The company exited the quarter with cash and equivalents worth $85.22 million. 

Outlook: POOL narrowed its FY23 EPS outlook to $13.15-$13.65 (from $13.14-$14.14), including the impact of year-to-date tax benefits of $0.15.

"Given the challenges presented in 2023, we believe ending the year at $13.15, compared to the $6.40 we reported in 2019, would be a solid result, showcasing our ability to maintain favorable pricing and profitability in this challenging environment. While this year has been a period of stabilization for the outdoor living industry, we remain confident in the long-term growth opportunities available organically through a combination of continuously improved execution, strategic product additions and targeted new locations, as well as selective acquisitions," said Peter D. Arvan, president and CEO.

Also Read: Pool Corp Faces Weather-Driven Revenue Decline: Analyst's Forecast And Strategy

Price Action: POOL shares are down 1.47% at $331.78 on the last check Thursday.