Leslie's stock tanks 15% after pool supplier forecasts rougher 2024

Shares of Leslie's Inc. (LESL) fell 15% in the extended session Tuesday after the supplier of spa and pool products reported fourth-quarter earnings below expectations and called for 2024 revenue and profit also below Wall Street forecasts. Leslie's earned $16.5 million, or 9 cents a share, in the quarter, compared with $57.9 million, or 31 cents a share, in the year-ago period. Adjusted for one-time items, the company earned 14 cents a share. Revenue dropped 9.1% to $432.4 million, the company said. Analysts polled by FactSet expected adjusted earnings of 16 cents a share on sales of $419 million. "Following three years of unprecedented growth, the pool industry and Leslie's faced multiple transitory headwinds in 2023 that impacted our financial results through the fiscal fourth quarter," Chief Executive Mike Egeck said in a statement. For 2024, the company said it expects revenue between $1.410 billion and $1.470 billion and adjusted EPS between 25 cents and 33 cents. That compares with FactSet consensus of revenue of $1.5 billion and adjusted EPS of 46 cents for the year. In July, Leslie lowered the outlook for this year, saying that its customers were affected by higher prices.

-Claudia Assis

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11-28-23 1707ET

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