Core Viewpoint - Pool Corporation (POOL), a leading distributor of swimming pool supplies, is expected to announce its fiscal fourth-quarter earnings for 2025 soon, with analysts projecting a slight increase in profit per share compared to the previous year [1][2]. Financial Performance - Analysts anticipate POOL will report a profit of $0.99 per share on a diluted basis for the upcoming quarter, reflecting a 2.1% increase from $0.97 per share in the same quarter last year [2]. - For the full fiscal year, analysts expect POOL's EPS to be $10.87, which is a decrease of 1.8% from $11.07 in fiscal 2024, but forecast a rise of 6.5% year over year to $11.58 in fiscal 2026 [3]. Stock Performance - Over the past 52 weeks, POOL stock has underperformed, with a decline of 23.3%, compared to a 16.9% gain in the S&P 500 Index and a 21.9% rise in the Industrial Select Sector SPDR Fund [4]. - Following the Q3 results announcement on October 23, 2025, POOL shares closed marginally up, with an adjusted EPS of $3.39 exceeding Wall Street expectations of $3.38, and revenue meeting forecasts at $1.5 billion [5]. Analyst Ratings - The consensus opinion on POOL stock is moderately bullish, with a "Moderate Buy" rating. Among 15 analysts, five recommend a "Strong Buy," nine suggest a "Hold," and one advises a "Moderate Sell" [6]. - The average analyst price target for POOL is $311.09, indicating a potential upside of 16.1% from current levels [6].

Core Insights - Pool Corporation (POOL) is a leading distributor of swimming pool supplies and related products, with a market cap of $8.9 billion [1] - The company's stock has significantly underperformed the broader market, declining 34.1% over the past year compared to an 11% increase in the S&P 500 Index [2] - POOL's Q3 results showed an adjusted EPS of $3.39, slightly above Wall Street expectations, with revenue meeting forecasts at $1.5 billion [4] Performance Analysis - POOL's stock has also underperformed compared to the Industrial Select Sector SPDR Fund (XLI), which gained 6.4% over the past year [3] - Year-to-date, POOL is down 29.6%, while the S&P 500 has risen 12.3% [2] Earnings Expectations - Analysts project a 1.8% decline in POOL's EPS for the current fiscal year, estimating it at $10.87 on a diluted basis [5] - The company's earnings surprise history is mixed, with three out of the last four quarters beating consensus estimates [5] Analyst Ratings - Among 15 analysts covering POOL, the consensus rating is a "Moderate Buy," with four "Strong Buy," ten "Holds," and one "Moderate Sell" [5] - Oppenheimer analyst Scott Schneeberger maintains a "Buy" rating with a price target of $346, suggesting a potential upside of 44.2% [6] - The mean price target of $329.27 indicates a 37.2% premium to current price levels, while the highest target of $375 suggests a 56.3% upside potential [6]

Core Viewpoint - Warren Buffett's investment in Pool Corporation (POOL) suggests confidence in the long-term potential of the swimming pool industry despite current market challenges [1][2][3] Investment History - Berkshire Hathaway initiated a position in Pool in Q3 2024 with approximately 404,000 shares at an average price of $342 [3] - The investment was increased significantly in Q1 2025, with Berkshire holding 1,464,000 shares, a 145% increase from the previous quarter [5] - As of July 28, Pool shares traded at $321, indicating that the investment opportunity identified by Berkshire remains available [5][6] Financial Performance - Pool's Q2 sales were reported at $1.78 billion, reflecting a growth rate of just under 1% [6] - Adjusted earnings per share (EPS) for Q2 came in at $5.17, exceeding expectations of 2.8% growth with an actual growth rate of approximately 3.8% [6][7] - The company adjusted its full-year EPS guidance down by 2.2% to $11.05, indicating challenges in demand management [7][8] Market Conditions - The pool construction market is currently experiencing a downturn, with expectations for no rebound in 2025 due to high interest rates affecting housing turnover [8][9] - New pool construction accounts for only about 15% of Pool's sales, but it is essential for long-term growth as it expands the customer base for maintenance products [10][11] Long-Term Trends - Scientists predict a significant increase in average global temperatures by 2100, which may drive a long-term trend toward increased swimming pool ownership [9][13] - Population migration to warmer Southern U.S. states is identified as a long-term growth driver for the company [11] - Analysts see limited short-term upside for Pool shares, but there is potential for significant appreciation over the long term if favorable trends materialize [13]