Pool Corp Shows Positive Signs Amid Mixed Performance

Pool Corporation exhibits growth potential with a strong Q4 EPS of $0.97. After a year of underperformance, the company's strategic initiatives and a favorable 2025 EPS guidance suggest a cautious investor optimism.

Date: 27-02-2025

AI Rating: 6

Positive Earnings Per Share (EPS) Guidance
Pool Corporation reported a stronger-than-expected Q4, with adjusted earnings per share (EPS) of $0.97. Furthermore, the company has provided EPS guidance for 2025 ranging from $11.08 to $11.58, showcasing confidence in its operational stability and consumer demand.

Mixed Revenue Directions
For the current fiscal year ending December 2025, analysts project a 2.5% year-over-year growth for EPS, reaching $11.35. While this indicates growth, the historical earnings surprise history remains mixed, as the company missed estimates in one out of four recent quarters. This cautious sentiment may impact investor confidence going forward.

Market Performance Analysis
Despite its operational strengths, shares of Pool Corporation decreased by 9% over the past year, underperforming compared to the broader S&P 500 Index's increase of 18.5%. However, YTD performance shows a slight outperformance with a 3.1% increase compared to the S&P 500's 2.2% gain.

`Analysts hold a cautious view, with the consensus rating being a "Moderate Buy," suggesting some confidence in its future. However, potential weakness is indicated by a recent price target reduction by an analyst, underscoring the cautious outlook as the stock currently trades below the mean price target of $368.

Stocks: POOL