Shares of Pool Corporation (POOL 2.18%) 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.
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.
Management also affirmed a full-year earnings guidance range of $4.12 to $4.32 per share.
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.