Shares of swimming pool supply company Pool Corporation (POOL -1.93%) jumped higher on Thursday after the company reported financial results for the second quarter of 2024. As of noon ET, Pool stock was up about 10%.

Diving into Pool's numbers

So Pool's Q2 results were good, right? Well, that's overly simplistic. In fact, many of the company's metrics are down. The Q2 net sales of $1.8 billion were down 5% year over year, its profit margins went down, and its earnings per share (EPS) dropped 16% to $4.99. None of this looks good without context.

POOL - Pool

$195.23-$3.85 (-1.93%)

NASDAQ · As of 4:00 PM ET 10/26/26

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Key data points

Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.$7.09B

Day's range$193.92 - $199.58

52wk range$152.70 - $293.27

Volume37.5

Avg volume788.2K

Gross margin29.42%

Dividend yield2.61%

Pool's management keeps updating its guidance for 2024. It most recently gave an update on June 24, saying net sales in the first half of 2024 would be down about 6.5% and that it would have full-year EPS of $11.04-$11.44. But in its Q2 report today, its net sales were better than expected considering they fell only 5.7% in the first half of the year.

Pool's profit margins are down, which isn't good. Specifically, its Q2 operating margin of 15.3% was down from an operating margin of 17.6% in the same quarter last year. But management added a penny to its full-year EPS guidance, so there's a little encouragement on the bottom line.

Is Pool going to be OK?

Pool sells products needed for pool construction and pool maintenance. When it comes to maintenance, things are fine -- demand is steady, and modestly higher supply prices are boosting sales. But new pool construction and renovations are both way down, and this is dragging down the company's overall results.

I believe Pool can be a great stock for long-term investors. There will sometimes be low demand. But people with swimming pools usually spend for maintenance, giving the company a predictable profit stream. Management regularly reduces its share count, and it pays a growing dividend with its profits, which are boosters of long-term shareholder returns.

POOL Average Diluted Shares Outstanding (Quarterly) data by YCharts

Pool stock might get cheaper in the near term. But about twice this year's sales isn't a bad price for this stock that's performed really well over the last 10 years.