Pool Corporation stock falls on weak summer demand for pools

Shares of Pool Corporation (POOL) are falling after the company revised its 2024 earnings guidance, citing slower-than-expected demand during the summer swimming season.

Yahoo Finance Hosts Julie Hyman and Josh Lipton report more on the story and other companies being affected by the weak demand, including Pentair (PNR).

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Melanie Riehl

Video transcript

Shares of Pool Corporation falling today after the company revised its 2024 earnings guidance.

It cited slower than expected demand during the summer swimming pool season.

And this, um hit, not just pool it hit.

I was joking earlier.

It created a real ripple effect.

I'm sorry to repeat that very bad joke, but it was not just other pool supply companies.

Penta, um, which apparently is a, um, distribute gives Pool Corp chemicals that that then distributes.

I noticed Home Depot was lower today.

There's really this big group that was lower on this commentary here, Um, that, you know, because the forecast from the company, they slashed it a lot.

They slashed it to the upper end at 1144 from 1419 a share for the full year.

That is a big, big cut to earn guidance.

Yeah, I thought this line from Pool really stood out to me when they said The discretionary components of our business, which are the most affected by general economic conditions, have been challenged by cautious consumer spending on big ticket big ticket items like swimming pools and outdoor living projects.

So just as we were just talking there, um, to Ian win.

You do.

You do have consumers here, at least some consumers who seem to be prioritising more.

You know what they need rather than what they want.

Well, And also, if you think about, for example, a vacation, right?

He was just talking about a vacation.

Or people who are in retirement who are buying a boat who don't have to finance it.

A pool is probably a financed project, and as rates have remained high and is right, exactly so maybe that's the the differentiator there for sure.