Pool (NASDAQ:POOL) Announces Earnings Results, Misses Estimates By $0.15 EPS

Pool (NASDAQ:POOL) released its quarterly earnings results on Thursday. The specialty retailer reported $0.84 earnings per share for the quarter, missing the consensus estimate of $0.99 by ($0.15), Zacks reports. Pool had a net margin of 7.77% and a return on equity of 31.40%. The company had revenue of $982.21 million during the quarter, compared to the consensus estimate of $999.14 million. During the same period in the prior year, the company earned $0.97 earnings per share. The firm’s revenue was down .5% compared to the same quarter last year. Pool updated its FY 2026 guidance to 10.850-11.150 EPS.

Here are the key takeaways from Pool’s conference call:

• Full-year revenue held steady at $5.3 billion while gross margin expanded to 29.7% (Q4 margin 30.1%), driven by pricing, supply-chain benefits and private-label mix.
• Earnings and operating income declined — adjusted diluted EPS was $10.73 (reported $10.85) versus prior-year levels and operating income fell to $580 million, reflecting higher SG&A from tech, new-center costs and incentive compensation pressure.
• 2026 outlook calls for low single-digit net sales growth with diluted EPS guidance of $10.85–$11.15 and gross margin roughly in line with 2025 as investments scale and pricing/privates offset mix shifts.
• Strategic investments are advancing — POOL360 Unlocked and AI features, expansion of exclusive brands, and digital sales rising to ~15% of revenue should enhance customer experience, share gains and operating efficiency.
• Working-capital and leverage increased — year-end inventory rose ~13% to $1.45 billion from opportunistic pre-price buys and total debt increased to $1.2 billion (leverage 1.67x), which raises near-term funding and execution risks.

Pool Trading Down 11.0%

NASDAQ POOL traded down $27.97 during trading hours on Thursday, reaching $227.36. The company’s stock had a trading volume of 2,034,090 shares, compared to its average volume of 814,806. The firm has a fifty day simple moving average of $250.48 and a 200-day simple moving average of $275.83. The company has a debt-to-equity ratio of 0.76, a current ratio of 2.57 and a quick ratio of 0.87. Pool has a 52 week low of $216.32 and a 52 week high of $374.74. The stock has a market cap of $8.47 billion, a P/E ratio of 20.73, a P/E/G ratio of 4.50 and a beta of 1.22.

Key Pool News

Here are the key news stories impacting Pool this week:

• Positive Sentiment: Operational profitability remains strong: Pool reported a 31.4% return on equity and a 7.77% net margin, showing healthy unit economics that support long?term cash generation. Pool press release
• Neutral Sentiment: Pool reported stable full?year 2025 net sales of ~$5.3B and provided FY2026 EPS guidance of $10.85–$11.15, which still implies strong absolute earnings power but leaves room for analyst revisions. Pool Corp Issues 2025 Results and 2026 EPS Outlook
• Neutral Sentiment: Analyst commentary entering the print had highlighted resilient maintenance demand and digital investments (POOL360) as offsets to cyclical weakness — context that could limit downside if execution remains steady. Pool Corp to Report Q4 Earnings: What’s in the Offing for the Stock?
• Negative Sentiment: Earnings and revenue missed expectations: Q4 EPS was $0.84 vs. consensus ~$0.99, and revenue came in at $982.2M vs. ~$999.1M, with revenue slightly down year?over?year — the primary catalyst for the sell?off. Pool Corp. (POOL) Lags Q4 Earnings and Revenue Estimates
• Negative Sentiment: FY2026 EPS guidance (10.85–11.15) came in below the prior consensus (~11.58), increasing the likelihood of analyst downward revisions and pressuring valuation multiples. MarketBeat earnings summary
• Negative Sentiment: Investor sentiment turned more bearish after analysts and commentaries called the stock “still expensive” with limited near?term rebound potential given mixed demand trends and a rich valuation. Pool Corporation: Still Expensive With No Rebound In Sight

Hedge Funds Weigh In On Pool

Several large investors have recently modified their holdings of POOL. CYBER HORNET ETFs LLC bought a new stake in shares of Pool in the second quarter worth $30,000. MUFG Securities EMEA plc acquired a new position in Pool during the 2nd quarter worth about $33,000. Los Angeles Capital Management LLC bought a new stake in shares of Pool in the 4th quarter valued at about $38,000. Geneos Wealth Management Inc. grew its position in shares of Pool by 164.4% in the 1st quarter. Geneos Wealth Management Inc. now owns 156 shares of the specialty retailer’s stock valued at $50,000 after buying an additional 97 shares during the last quarter. Finally, Quarry LP increased its stake in shares of Pool by 719.6% in the fourth quarter. Quarry LP now owns 459 shares of the specialty retailer’s stock valued at $105,000 after buying an additional 403 shares during the period. Institutional investors own 98.99% of the company’s stock.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on POOL. Cfra raised shares of Pool from a “hold” rating to a “buy” rating and set a $304.00 target price for the company in a research report on Monday, December 22nd. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Pool in a report on Monday, December 29th. Wells Fargo & Company increased their price target on shares of Pool from $250.00 to $275.00 and gave the stock a “cautious” rating in a research report on Wednesday, February 11th. Stifel Nicolaus lowered their price objective on shares of Pool from $295.00 to $240.00 and set a “hold” rating for the company in a research report on Tuesday, December 16th. Finally, The Goldman Sachs Group cut their target price on Pool from $360.00 to $310.00 and set a “buy” rating for the company in a research note on Tuesday, January 13th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $311.13.

About Pool

Pool Corporation is a leading wholesale distributor of swimming pool supplies, equipment, and related outdoor living products. Headquartered in Covington, Louisiana, the company serves a diverse customer base that includes service professionals, independent retailers, high-volume builders, and national retail chains. Pool Corporation’s extensive branch network enables it to maintain strong local customer relationships while leveraging its scale to source products efficiently from manufacturers around the world.

The company’s product portfolio spans pool and spa chemicals, water treatment equipment, pumps, filters, heaters, automation and control systems, liners, safety covers, and cleaning accessories.