2023-04-20 07:31:00 ET
Pool Corporation ( NASDAQ: POOL ) stock slid sharply before the bell on Thursday after missing earnings estimates and dimming its full-year outlook.
For the first quarter, an EPS report of $2.46 came up $0.73 short of expectations, while a 14.3% drop in revenue year over year to $1.2B also fell short of consensus estimates . Gross margins contracted 110 basis points in Q1 as compared to the same period in 2022.
“In the first quarter of 2023, differing weather conditions contributed to variability in our results across geographies. Our southern markets experienced more typical weather during the quarter and generated encouraging results. However, higher precipitation and cooler temperatures suppressed results in our western markets, hampering new pool construction activities and sales of maintenance-related products,” CEO Peter D. Arvan commented. “These conditions continued into late March where we saw a considerable impact on our biggest sales month of the quarter. Headwinds from economic conditions, including tightening financial markets and higher interest rates, further weighed on new pool construction.”
The company trimmed its full-year EPS forecast to a range of $14.62 to $16.12, down from a prior guide of $16.03 to $17.03 and short of the analysts consensus of $16.24. Shares of Pool Corporation ( POOL ) slumped about 4% shortly after the print .
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Pool Corporation stock plunges on earnings miss, pared guidance