Core Insights - Wedgewood Partners sold its entire position in Pool Corporation, divesting 32,322 shares valued at $10.02 million as of February 17, 2026 [1][2] Company Overview - Pool Corporation operates in the distribution of swimming pool supplies, equipment, and related leisure products across North America, Europe, and Australia [6][9] - The company has a market capitalization of $9 billion and reported revenue of $5.29 billion with a net income of $412.12 million for the trailing twelve months [4] Financial Performance - Pool Corporation's sales for 2025 were $5.3 billion, showing a slight year-over-year decline, while the gross margin remained steady at 29.7% [7] - The diluted EPS decreased by 4% year-over-year to $10.85, with management guiding for a range of $10.85 to $11.15 for 2026 [7] - Operating income fell from $617.2 million to $580.2 million, and operating cash flow decreased to $365.9 million due to inventory buildup ahead of price increases [10] Market Position - As of February 17, 2026, shares of Pool were priced at $255.46, down 24.4% over the past year, underperforming the S&P 500 by 36.5 percentage points [8] - The company serves a primary customer base that includes swimming pool professionals, specialty retailers, and commercial clients such as hotels and community facilities [9] Strategic Considerations - The sale of Pool Corporation by Wedgewood Partners reflects a shift towards secular compounders over cyclical, weather-sensitive operators [11] - Long-term investment considerations include housing turnover, backyard renovation trends, and the resilience of margins, with the company's scale and extensive sales center network providing leverage if discretionary demand stabilizes [12]

Core Insights - Pool Corp. is the world's largest wholesale distributor of swimming pool equipment, parts, and supplies, but its revenue sources are diverse and influenced by market conditions [1] Revenue Sources - Approximately one-third of Pool's revenue is derived from new pool installations, which have seen a decline post-pandemic due to high interest rates affecting the housing market [2] - The remaining two-thirds of revenue comes from maintenance and repair of existing pools, which is recurring and provides stability for the company's dividend, currently yielding about 2.1% [3] Stock Valuation - Pool's current stock price is around $239.98, significantly lower than its five-year average price of $372, and even below the price paid by Berkshire Hathaway, which ranged from $285 to $390.03 per share [4][5] - Investors purchasing shares now are receiving a discount of 18.2% to 40.2% compared to what Buffett paid [6] Market Outlook - The decline in Pool's stock price is largely attributed to the outlook for the real estate market, which affects new pool installations [7] - While maintenance and repair revenue is less dependent on real estate, the company faces limitations in price increases due to its role as a distributor [8] - Future growth in maintenance and repair revenue is contingent on an increase in the number of pools, which is tied to a recovering housing market [9]

Core Insights - Pool Corporation (NASDAQ:POOL) is a prominent distributor in the swimming pool supplies and equipment sector, catering to both residential and commercial clients, and competes with companies like Leslie's and Hayward Holdings [1] Financial Performance - For Q3 2025, Pool Corp. reported earnings of $3.39 per share, slightly exceeding the Zacks Consensus Estimate of $3.38 per share, marking a year-over-year increase from $3.26 per share, resulting in a +0.30% earnings surprise [3] - The company generated $1.45 billion in revenue for the quarter, marginally surpassing the Zacks Consensus Estimate by 0.14%, and showing a slight increase from $1.43 billion in the same quarter last year [4] Stock Performance - Pool Corp.'s stock price recently increased by $2.72, reflecting a 0.91% rise, with a trading range between $290.23 and $303.05, and a market capitalization of approximately $11.2 billion [5] - Goldman Sachs has set a price target of $360 for Pool Corp., indicating a potential price increase of approximately 19.88% from its current price of $300.31 [2][6]