Pool Corp. (NASDAQ:POOL) shares are under pressure today after the wholesale distributor of swimming pool products delivered a mixed set of numbers for the fourth quarter. With a year-over-year decline of 8%, revenue of $1 billion missed the cut by $20 million. However, EPS of $1.30 fared better than expectations by $0.03.
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The decline in the company’s top line was primarily due to soft consumer spending and muted pool construction-associated activities. On the other hand, POOL’s gross margin improved by 50 basis points to 29.3% due to lower inflation in price increases at its vendors.
Despite challenging macroeconomic conditions, POOL remains optimistic about its growth prospects over the long term. For Fiscal Year 2024, the company expects adjusted EPS in the range of $13 to $14.
Is POOL a Good Stock to Buy?
Today’s price decline comes after a nearly 9% jump in POOL’s share price over the past three months. Overall, the Street has a Hold consensus rating on Pool Corp alongside an average price target of $383. However, analysts’ ratings for the stock could see changes following today’s earnings report.
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