Pool Corporation POOL reported fourth-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom lines declined from the prior-year quarter's actuals.

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The company's 2024 results underscore the resilience of its business model amid a challenging macroeconomic environment. The company reported enhancements to the POOL360 digital ecosystem, including technology rollouts and expanded digital marketing programs, paving a path for increased sales of private-label chemical products. It strengthened its sales center network, adding 10 greenfield locations and completing two acquisitions, bringing its total footprint to 448 locations worldwide.

POOL’s Q4 Earnings & Revenue Discussion

For the fourth quarter, the company reported adjusted earnings per share (EPS) of 97 cents, which beat the Zacks Consensus Estimate of 91 cents. In the prior-year quarter, the company reported an adjusted EPS of $1.30.

Pool Corporation Price, Consensus and EPS Surprise

Pool Corporation price-consensus-eps-surprise-chart | Pool Corporation Quote

Quarterly net revenues of $987.5 million beat the consensus mark of $953 million. The top line declined 1.6% year over year. The decline can be primarily attributed to dismal sales of pool construction and discretionary products.

POOL's Operating Highlights & Expenses

In the fourth quarter, the cost of sales came in at $697.2 million compared with $709.3 million reported in the prior-year quarter. Our estimate for the metric was $653.4 million.

In the quarter, gross profits (as a percentage of net sales) came in at 29.4% compared with 29.3% reported in the prior-year quarter. Our estimate for the metric was 30.3%.

In the fourth quarter, operating income declined 23.6% year over year to $60.7 million. Our estimate for the metric was $62.1 million. The operating margin came in at 6.1%, down 180 bps from the prior-year quarter’s level. Our estimate for operating margin was 6.6%.

Selling and administrative expenses increased 7.1% year over year to $229.6 million. In the fourth quarter, the company’s expenses rose, primarily due to inflationary pressures, network expansion and investments in technology initiatives. Our estimate for the metric was $222.5 million.

Net income during the quarter totaled $37.3 million compared with $51.4 million reported in the year-ago quarter. Our estimate for net income was $38.5 million.

POOL's Balance Sheet

As of Dec. 31, 2024, the company’s cash and cash equivalents amounted to $77.9 million compared with $66.5 million as of Dec. 31, 2023. In the quarter, its net long-term debt was $900.9 million compared with $1.02 billion reported in the year-ago quarter.

For the 12 months ended Dec. 31, 2024, net cash provided by operating activities amounted to $659.2 million compared with $888.2 million reported in the prior-year period.

2024 Highlights

Net sales in 2024 came in at $5.31 billion compared with $5.54 billion in 2023.

Operating income in 2024 came in at $617.2 million compared with $746.6 million in 2023.

In 2024, adjusted EPS came in at $11.07 compared with $13.18 in the previous year.

POOL's 2025 Guidance

For 2025, Pool Corp. expects adjusted EPS in the range of $11.08-$11.58.

POOL’s Zacks Rank

The company currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Consumer Discretionary Releases

Hilton Worldwide Holdings Inc. HLT reported exceptional fourth-quarter 2024 results, wherein adjusted earnings and total revenues surpassed the Zacks Consensus Estimate and grew year over year.

The company's performance was backed by strong demand for leisure travel, with continued growth in business transient and group travel. These robust trends supported growth in occupancy and average daily rate, resulting in increased revenue per available room. Furthermore, favorable net unit growth compared with last year and the continuous efforts in expanding the portfolio globally added to the uptrend. HLT expects the robust travel trends to continue into 2025, positioning it to deliver strong results in the near term.

Mattel, Inc. MAT reported fourth-quarter 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.

In 2024, Mattel repurchased $400 million worth of shares and improved its leverage ratio. The company remains ahead of schedule in achieving its $200 million cost-savings target by 2026. For 2025, Mattel projects continued revenue and earnings growth, increased investments in digital gaming and a $600 million share repurchase program, underscoring its commitment to long-term shareholder value creation. MAT anticipates adjusted EPS in 2025 to be between $1.66 and $1.72 compared with $1.62 reported in 2024.

Marriott International, Inc. MAR reported fourth-quarter 2024 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. The top line increased year over year while the bottom line declined from the prior-year quarter.

Marriott posted strong results for 2024, driven by steady global travel demand and strategic portfolio expansion. The company’s development momentum remained strong, with the signing of a record number of new deals and its development pipeline reaching 577,000 rooms. Given its vast global footprint, a loyalty program comprising nearly 228 million Marriott Bonvoy members and an asset-light model, MAR remains well-positioned to capitalize on travel demand and drive growth in the upcoming periods.

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