What happened

Shares of Pool Corporation (POOL -0.49%) fell as much as 10.4% in trading Thursday after the company reported second-quarter earnings. At 2:05 p.m. EDT, shares were still down 8.3% for the day. 

So what

Net sales rose 8% to $988.2 million, and base business sales growth was 7%. Operating income also rose 8% to $154.2 million, while net income was up 11.1% to $94.9 million, or $2.21 per share. The bottom-line results fell 3 cents short of analyst estimates, but top-line sales easily surpassed the $982.7 million analysts were expecting. 

Life preserver in a swimming pool.

Image source: Getty Images.

Management also affirmed a full-year earnings guidance range of $4.12 to $4.32 per share. 

Now what

Results at the distributor of swimming pool supplies may have fallen slightly below expectations, but there wasn't really anything alarming about the quarter. And management's affirmation that full-year targets would be hit should give investors confidence in operations going forward. My one reservation is that shares are still trading at 25 times earnings. That's a high multiple for a company growing in the single digits, and will keep me from buying the discount today.