Pool Corp(US:POOL) ZACKSยท2024-07-26 15:25Core Viewpoint - Pool Corporation (POOL) reported second-quarter 2024 results with earnings and revenues exceeding the Zacks Consensus Estimate, although both metrics declined compared to the prior-year quarter [1][3]. Earnings & Revenues Discussion - Adjusted earnings per share (EPS) for the second quarter were $4.98, surpassing the Zacks Consensus Estimate of $4.90, but down from $5.89 in the prior-year quarter [3]. - Quarterly net revenues reached $1.77 billion, beating the consensus mark of $1.74 billion, but reflecting a 4.7% year-over-year decline due to lower consumer spending on discretionary items and poor sales in building materials [3]. Operating Highlights & Expenses - Cost of sales for the quarter was $1.24 billion, down from $1.29 billion in the prior-year quarter, aligning with estimates [4]. - Gross profit margin was 30%, a decrease of 60 basis points from 30.6% in the previous year [4]. - Operating income fell 17% year over year to $271.5 million, with an operating margin of 15.3%, down 230 basis points from the prior-year quarter [5]. - Selling and administrative expenses increased by 7.4% year over year to $258.7 million, driven by higher spending on network expansion and technology initiatives [5]. Net Income - Net income for the quarter was $192.4 million, down from $232.3 million in the prior-year quarter [6]. Balance Sheet - As of June 30, 2024, cash and cash equivalents were $96.9 million, up from $53.2 million a year earlier [7]. - Net long-term debt decreased to $1.07 billion from $1.15 billion in the prior-year quarter [7]. - Goodwill remained relatively stable at $699.7 million compared to $699.9 million in the previous year [7]. Cash Flow - For the six months ended June 30, 2024, net cash provided by operating activities was $172.1 million, down from $376.8 million in the prior-year period [8]. 2024 Guidance - For 2024, Pool Corporation expects adjusted EPS to be in the range of $11.05 to $11.45 [9].