News about Pool Corp

Pool Corp shares rose as much as 10.6% Thursday morning, while the S&P 500 fell 1.2%, after the company reported better-than-expected third-quarter results. Sales rose 3.7% year over year to $1.50 billion, and diluted earnings were $3.40 per share against an estimate of about $3.36. Price increases helped drive sales as the company passed higher freight costs on to customers, and management reaffirmed its full-year targets. The stock is still down 37% over the past year and 49% over two years, and the author says he is not a fan of the shares.

Pool Corp shares rose 9.53% to $188.87 in early trading, giving the company a market value of about $6.8 billion, after falling about 43% over the past year. Third-quarter net sales reached $1.5 billion, up 4%, with about 3 percentage points from higher prices, and adjusted earnings were $3.40 per diluted share, above the $3.36 analyst estimate. However, gross margin slipped 0.6 percentage points to 29%, operating income fell 3% to $172.2 million, and net income fell 3% to $123 million amid higher costs. The company reaffirmed its full-year adjusted EPS forecast of $10.87 to $11.17, and sales growth accelerated from 2% in the second quarter.