Analysts Revise Projections for Pool Corporation Amid Seasonal Demand Shifts

On June 24, U.S.-based Pool Corporation (NASDAQ: POOL), a distributor of swimming pool supplies and equipment, revised its 2024 earnings guidance amid slower demand during the swimming pool season. With peak selling season almost complete, the company now expects new pool construction activity to be down 15% to 20% in 2024 vs the prior year, with remodel activity down approximately 15%. Following the announcement, Visible Alpha consensus estimates show analysts have significantly revised estimates for Pool Corporation. For the upcoming second-quarter earnings, the company’s net sales are expected to decline by -5% year over year, with the company generating $1.8 billion in net sales, down -6.5% from the $1.9 billion estimated prior to the revised guidance.

Pool Corporation is the largest distributor of Pentair’s (NYSE: PNR) pool equipment. Following the revised guidance by Pool, analysts have also revised their projections for Pentair’s pool segment, which accounts for approximately 34% of the company’s net sales. For the upcoming quarter, Pentair is now expected to generate $367 million in pool sales, down -2.2% from the earlier estimate of $375 million, before Pool Corporation’s revised guidance.  

Pentair is set to report second-quarter results on July 23, with Pool Corporation following on July 25.