Pool Corp 2Q profit up, but shares fall on outlook

Pool Corp posts 11 pct increase in 2nd-qtr profit, but shares tumble on lowered 2012 outlook

Associated Press

COVINGTON, La. (AP) -- The Pool Corp. saw its second-quarter net income rise 11 percent with unseasonably warm weather pushing more people to stock up on pool supplies, but it fell short of expectations for both net income and revenue and shares tumbled nearly 8 percent on a guarded outlook for the rest of the year.

The company, based in Covington, La., said that because customers stocked up early, it could affect sales during the second half of the year and it also cited the uncertain economy. Pool lowered the high end of its previous full-year profit guidance.

Pool earned $64.9 million, or $1.34 per share, up from $58.6 million, or $1.19 per share, in the year-ago period. The profit fell a penny short of Wall Street predictions. Revenue rose 7.2 percent to $757.2 million. Analysts expected $770.1 million.

Pool said that fluctuations in currency exchange rates shaved off a penny per share in earns.

Pool Corp. said it now expects to post a 2012 profit of between $1.75 and $1.82 per share, less than the previous outlook of between $1.75 and $1.85 per share. And Wall Street had been predicting that Pool would hit the top of its previous range.

In heavy afternoon trading, Pool Corp. shares fell $3.09 to $37.43, after dropping as low as $36 earlier in the day. Over the past 52 weeks, the company's shares have traded between $22.60 and $41.27.

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