Pool Corporation shares surged 14.36% to $197.21 from $172.44 after the swimming pool distributor posted third-quarter results that topped Wall Street expectations and left its full-year guidance untouched. Net sales rose 4% to $1.5 billion, an acceleration from the 2% growth logged in the second quarter, with roughly 3 percentage points of that increase coming from price. Diluted earnings per share came in at $3.40, matching the prior-year quarter, while adjusted diluted EPS ticked up a penny as a non-GAAP profit of $3.40 per share beat analyst consensus by 1.2%. The company reported quarterly profit of $123 million.
The gain came even as operating income fell 3% to $172.2 million from $178.0 million a year earlier, a sign that cost pressures, including freight headwinds, are still weighing on margins. Pool said maintenance revenue stayed resilient and building-materials volumes kept improving, helping offset a cautious discretionary-spending backdrop and continued softness in new pool construction. On the earnings call, the company also pointed to a 47% surge in operating cash flow during the quarter.
Management confirmed its annual diluted EPS guidance range of $10.66 to $10.96, including minor tax benefits, and its adjusted diluted EPS range of $10.87 to $11.17. Holding that outlook rather than resetting it suggests the quarter fit within the company's existing full-year plan instead of representing a surprise that required new expectations. The rebound followed a stretch of bearish sentiment on the stock, including a Tuesday move by Stifel analyst W. Andrew Carter to maintain a Hold rating while cutting the price target to $175 from $189, just two days before the earnings beat.
The rally extended Pool's bounce over the past week, with shares up 16.61% over the last five trading days and 12.20% over the last 30, though the stock remains well below its 52-week high of $305.63 and above its 52-week low of $152.70. Investors watching for confirmation that the turnaround has legs will likely focus on whether maintenance demand and building-materials strength can keep offsetting the drag from new pool construction and freight costs in the quarters ahead.