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Pool Corp (POOL) Q1 Earnings and Revenues Beat Estimates
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The swimming pool and lifestyle product maker Pool Corporation (POOL - Free Report) posted strong first-quarter 2017 results, wherein both the bottom line and the top line surpassed the respective Zacks Consensus Estimates.
Quarter Discussion
Pool’s first quarter earnings of 40 cents per share surpassed the Zacks Consensus Estimate of 39 cents by 2.6%. Meanwhile, the figure rose 5.3% on a year-over-year basis.
Net sales came in at $546.4 million, marking an increase of 6% year over year. Sales growth in certain product categories reflects the ongoing recovery in the remodel and replacement sectors of its business, as well as its consistent market share gains. Moreover, even though the weather was comparatively less beneficial in first-quarter 2017 than the same period last year, better-than-normal weather for the 2017 period helped to drive sales growth. Further, sales outpaced the Zacks Consensus Estimate of $519.3 million by 5.2%.
Behind the Headline Numbers
The company reports operations under two segments – the Base Business segment and the Excluded segment (sale centers excluded from base business).
Gross margin in the first quarter was 28.1%, up 30 basis points (bps) year over year, driven by changes in customer and product mix for the quarter. Also, gross profit increased 7% year over year to a record $153.6 million, with base business gross profit increasing 6%.
Additionally, selling and administrative expenses (operating expenses) increased approximately 8% year over year to $122.6 million in the reported quarter, with base business operating expenses increasing 7%. The upside was primarily driven by higher growth-driven labor costs, freight, the timing of certain employee related expenses and the ramp up of support costs in anticipation of the company’s peak selling season.
While the operating margin remained flat year over year at 5.7%, operating income was a record $31.0 million, up 5% from the year-ago quarter.
Pool Corporation Price, Consensus and EPS Surprise
Pool raised its EPS guidance for 2017 and now expects earnings within the range of $4.12–$4.32 per share (previously $4.00–$4.20).
Zacks Rank and Key Picks
Pool currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the Leisure and Recreation Products industry include:
Sturm, Ruger & Company, Inc. (RGR - Free Report) which has seen current quarter and current year estimates rise 11.4% and 16.4% respectively, over the past two months. It also carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Callaway Golf Company’s 2018 earnings growth estimate is pegged at 37.1%, compared with the industry average of 19.9%. The company currently holds a Zacks Rank #2.
West Marine, Inc. also carries a Zacks Rank #2 and has seen current year estimates rise 22.2%, over the past two months.
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Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
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Pool Corp (POOL) Q1 Earnings and Revenues Beat Estimates
The swimming pool and lifestyle product maker Pool Corporation (POOL - Free Report) posted strong first-quarter 2017 results, wherein both the bottom line and the top line surpassed the respective Zacks Consensus Estimates.
Quarter Discussion
Pool’s first quarter earnings of 40 cents per share surpassed the Zacks Consensus Estimate of 39 cents by 2.6%. Meanwhile, the figure rose 5.3% on a year-over-year basis.
Net sales came in at $546.4 million, marking an increase of 6% year over year. Sales growth in certain product categories reflects the ongoing recovery in the remodel and replacement sectors of its business, as well as its consistent market share gains. Moreover, even though the weather was comparatively less beneficial in first-quarter 2017 than the same period last year, better-than-normal weather for the 2017 period helped to drive sales growth. Further, sales outpaced the Zacks Consensus Estimate of $519.3 million by 5.2%.
Behind the Headline Numbers
The company reports operations under two segments – the Base Business segment and the Excluded segment (sale centers excluded from base business).
Gross margin in the first quarter was 28.1%, up 30 basis points (bps) year over year, driven by changes in customer and product mix for the quarter. Also, gross profit increased 7% year over year to a record $153.6 million, with base business gross profit increasing 6%.
Additionally, selling and administrative expenses (operating expenses) increased approximately 8% year over year to $122.6 million in the reported quarter, with base business operating expenses increasing 7%. The upside was primarily driven by higher growth-driven labor costs, freight, the timing of certain employee related expenses and the ramp up of support costs in anticipation of the company’s peak selling season.
While the operating margin remained flat year over year at 5.7%, operating income was a record $31.0 million, up 5% from the year-ago quarter.
Pool Corporation Price, Consensus and EPS Surprise
Pool Corporation Price, Consensus and EPS Surprise | Pool Corporation Quote
Earnings Guidance for 2017
Pool raised its EPS guidance for 2017 and now expects earnings within the range of $4.12–$4.32 per share (previously $4.00–$4.20).
Zacks Rank and Key Picks
Pool currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the Leisure and Recreation Products industry include:
Sturm, Ruger & Company, Inc. (RGR - Free Report) which has seen current quarter and current year estimates rise 11.4% and 16.4% respectively, over the past two months. It also carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Callaway Golf Company’s 2018 earnings growth estimate is pegged at 37.1%, compared with the industry average of 19.9%. The company currently holds a Zacks Rank #2.
West Marine, Inc. also carries a Zacks Rank #2 and has seen current year estimates rise 22.2%, over the past two months.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>