COVINGTON, La. - Pool (NASDAQ:POOL) Corporation (NASDAQ:POOL), the world's largest wholesale distributor of swimming pool supplies, equipment, and related leisure products, reported first-quarter earnings that slightly missed analyst expectations.
The company announced a diluted earnings per share (EPS) of $1.85, which was $0.01 lower than the analyst estimate of $1.86. Revenue for the quarter was also below expectations at $1.12 billion, compared to the consensus estimate of $1.13 billion. Compared to the same quarter last year, net sales saw a decrease of 7%.
Despite the headwinds from current macroeconomic conditions and mixed weather, the company managed to maintain over $1 billion in net sales for the fourth consecutive first quarter. Pool Corp . also highlighted a record 41% increase in net cash provided by operations, reaching $145.4 million.
However, net income dropped 22% YoY to $78.9 million, and operating income saw a 25% decrease to $108.7 million, with a reduced operating margin of 9.7%.
The company's gross profit decreased 8% to $338.6 million from the previous year, and gross margin fell slightly to 30.2%. Factors affecting the gross margin included benefits from reduced estimated import taxes, supply chain management initiatives, and a shift in product mix.
Operating expenses rose to $229.8 million due to various inflationary pressures and investments in technology and new locations.
Looking ahead, Pool Corp. has updated its annual earnings guidance to a range of $13.19 to $14.19 per diluted share, reflecting additional tax benefits. This updated guidance is slightly below the analyst consensus of $13.27.
Peter D. Arvan, president and CEO, expressed confidence in the company's ability to maintain market share and growth opportunities through strategic initiatives and improved execution.
Arvan stated, "With the introduction of new offerings from our Pool360 digital ecosystem, our customers are positioned with more capabilities for a successful year." He also noted the stability of the maintenance business and the company's commitment to maintaining its industry leadership position.
The company's balance sheet reflects a decrease in total debt and a reduction in inventory levels, aligning with the trends from inventory management efforts in the previous swimming pool season. Pool Corp. did not provide specific stock movement percentages in the press release, and no driver of the move was indicated.
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