Pool Corp upgrades full year profit forecast as seasonal buying patterns return

Pool

25/04/2024 12:51

April 25 (Reuters) - Pool Corp  POOL.O  increased its
full-year profit forecast on Thursday, as the company expects
sales and gross margin trends to improve with a return to
seasonal buying patterns. 
    The pool products distributor now sees diluted earnings per
share for 2024 between $13.19 and $14.19, compared with its
earlier forecast of $13.10 to $14.10 per share.
    The Covington, Louisiana-based company bills itself as the
world's largest wholesale distributor of swimming pool supplies
and equipment. It also sells irrigation and landscape products.
    "We remain confident in the growth opportunities available
through continuous improved execution, strategic product and
software additions, targeted expansion and selected
acquisitions," said CEO Peter Arvan.
     The company, however, missed Wall Street estimates for
first quarter adjusted profit on back of softening demand for
its pool equipment.
        It reported an adjusted profit of $1.85 per share,
missing analysts' average expectation of $1.91 per share for the
quarter, according to LSEG data.
  
        High interest rates and sticky inflation in the quarter
affected new housing construction, impacting demand for the
company's pool and landscaping products.
  
        It reported net sales of $1.12 billion. Analysts on
average, had expected it to post net sales of $1.13 billion.
  

 (Reporting by Aatreyee Dasgupta and Abhinav Parmar in
Bengaluru; Editing by Tasim Zahid)
 ((Aatreyee.Dasgupta@thomsonreuters.com;))