Pool Corp. Beats on Both Top and Bottom Lines

Pool (Nasdaq: POOL  ) reported earnings on April 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Pool beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased.

Gross margins dropped, operating margins grew, net margins expanded.

Revenue details
Pool logged revenue of $362.0 million. The seven analysts polled by S&P Capital IQ expected to see a top line of $336.1 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $312.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.06. The two earnings estimates compiled by S&P Capital IQ forecast $0.02 per share on the same basis. GAAP EPS were $0.08 for Q1 against -$0.01 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 28.9%, 30 basis points worse than the prior-year quarter. Operating margin was 1.7%, 150 basis points better than the prior-year quarter. Net margin was 1.0%, 120 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $764.2 million. On the bottom line, the average EPS estimate is $1.35.

Next year's average estimate for revenue is $1.93 billion. The average EPS estimate is $1.78.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 147 members out of 211 rating the stock outperform, and 64 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give Pool a green thumbs-up, and 23 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pool is hold, with an average price target of $40.50.

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