Pool Corp (POOL) Q2 Earnings Top, Revenues Miss Estimates
Zacks Investment Research | Jul 18, 2019 09:52PM ET
Pool Corporation (NASDAQ:POOL) reported mixed second-quarter 2019 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. While the bottom line outpaced the consensus mark after missing in the trailing two quarters, the top line lagged the same for the third straight quarter.
Adjusted earnings of $3.22 per share in the quarter exceeded the Zacks Consensus Estimate by a penny and increased 15% from the year-ago quarter number. Meanwhile, quarterly net revenues totaled $1,121.3 million, which fell short of the consensus mark of $1,155 million but improved 6% year over year.
Revenue growth can be primarily attributed to improved performance of the company’s Base Business. Additionally, favorable weather condition in the southeastern United States had a positive impact on the company’s results. However, these gains were negatively impacted by unfavorable weather in the company’s largest markets — California, Texas and Arizona.
Let’s delve deeper into the numbers.
Segmental Performance
Pool Corp reports operations under two segments — The Base Business segment (constituting majority of the business) and the Excluded segment (sale centers excluded from the base business).
Revenues at the Base Business segment increased 4.4% to nearly $1,103.4 million year over year. Also, operating income improved 5.8% to $171.6 million. Operating margin expanded 30 basis points (bps) from the year-ago quarter number.
The Excluded segment reported net revenues of $17.9 million, up from about $0.53 million registered in the prior-year quarter. The segment reported operating income of $0.93 million against the year-ago quarter’s loss of $0.11 million.
Pool Corporation Price, Consensus and EPS Surprise
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