Pool Corp Q2 Earnings Miss Estimates Amid Macro Woes; Cuts FY23 EPS Outlook

Pool Corporation POOL reported a second-quarter FY23 sales decline of 9.7% year-on-year to $1.857 billion, missing the consensus of $1.910 billion.

EPS of $5.91 missed the consensus of $6.20.

Challenging macro trends, a slow start to the swimming pool season due to negative impacts from cooler weather, lower maintenance activity than anticipated, and reduced outdoor living construction activity weighed on revenues.

Gross profit decreased 15% to $567.8 million in the quarter. Gross margin decreased 180 basis points to 30.6% year over year.

The total debt outstanding was $1.2 billion on June 30, 2023. The company exited the quarter with cash and equivalents worth $53.23 million. 

"We continued to expand our network during the second quarter, adding two acquired locations and three greenfields, bringing our new greenfield distribution locations to eight this year," said Peter D. Arvan, president and CEO. 

Outlook

POOL lowered its annual earnings guidance to $13.14-$14.14, including the impact of year-to-date tax benefits of $0.14. The Street view stands at $14.86. The prior annual earnings guidance range was $14.62-$16.12, including the impact of tax benefits of $0.12.

Price Action: POOL shares are trading lower by 1.7% at $359.73 on the last check Thursday.