Strong Earnings Performance#
Pool Corp. (NASDAQ:POOL) has reported its first-quarter earnings for 2026, revealing earnings per share (EPS) of $1.43. This figure surpasses Stifel’s estimate of $1.41, indicating stronger-than-expected sales growth. The company is currently trading at a price-to-earnings (P/E) ratio of 21.5, which suggests it may be undervalued according to analysis from InvestingPro.
Sales Growth and Revenue#
The company achieved a 6% increase in sales during the first quarter, significantly exceeding Stifel’s forecast of 2.5%. Pool Corp. attributes this success to a 1% boost from higher early buy concentration and favorable foreign exchange rates, which were previously estimated by Stifel to contribute 0.7%.
Margin and Guidance#
Despite the positive sales growth, Pool Corp. experienced a slight decline in gross margin, down 20 basis points, which fell short of Stifel’s expectations. The company noted that an unfavorable product mix, particularly in equipment and pre-buy activities, impacted its margin performance. Pool Corp. has maintained its full-year EPS guidance between $10.85 and $11.15, with Stifel’s estimate of $11.11 aligning with the higher end of this range.
Dividend and Market Impact#
Pool Corp. has a strong track record of increasing its dividend for 15 consecutive years, currently offering a yield of 2.13%. The company also reported a 9% rise in purchases for the first quarter. Stifel views these results positively for related companies such as Hayward Holdings (NYSE:HAYW) and Latham Group (NASDAQ:SWIM). Overall, Pool Corp.'s recent performance underscores its robust financial health, with no significant mergers or acquisitions announced and no recent analyst upgrades or downgrades.