The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Pool beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP loss per share shrank.
Gross margins dropped, operating margins expanded, net margins improved.
Pool logged revenue of $270.4 million. The seven analysts polled by S&P Capital IQ wanted to see revenue of $259.9 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $241.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.19. The eight earnings estimates compiled by S&P Capital IQ averaged -$0.22 per share on the same basis. GAAP EPS were -$0.21 for Q4 compared to -$0.23 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 29.9%, 60 basis points worse than the prior-year quarter. Operating margin was -4.7%, 230 basis points better than the prior-year quarter. Net margin was -3.7%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $331.9 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $1.93 billion. The average EPS estimate is $1.74.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 140 members out of 204 rating the stock outperform, and 64 members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give Pool a green thumbs-up, and 23 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pool is outperform, with an average price target of $32.75.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.