Market Updates
Pool Corp's Earnings Surge With Hikes in Prices, Inventories, Total Debt
Scott Peters
23 Apr, 2022
New York City
Pool Corp reported first quarter 2022 revenues increased 33% to $1.4 billion, net income soared 82% to $179.3 million, and diluted earnings per share rose 82% to $4.23 from $2.32 a year ago.
The revenue growth marked the 36th consecutive quarter of growth following a surge of 57% in the quarter a year ago.
Sales at existing businesses rose 26%supported by price increase between 10% and 12%, 5% pull forward both from the customers ordering ahead and extra selling days in the quarter compared to a year ago.
Gross margin improved to 49% and rose to 38% at existing businesses (excluding recent acquisitions) benefitting from inventory build up in prior year to meet rising demand.
Operating margin improved to 16.7% in the quarter from 12.1% in the prior year's quarter. Operating margin improved to 16.5% at the existing businesses.
To avoid supply chain delays, the wholesale distributor began ordering inventories in the second half of 2021 and raised inventory levels 68% to $1.6 billion. The inventory levels reflect the impact of inflation and recent acquisitions.
Total outstanding increased to $1.5 billion from $1.1 billion to fund recent acquisitions and support higher working capital.
Guidance and Outlook
The company lifted its annual earnings estimate outlook to between $18.34 to $19.39 from the previous estimate range between $17.19 and $17.94.
Annual Returns
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Earnings
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