Latest news with #Core&Main
Yahoo
12 hours ago
- Business
- Yahoo
Core & Main (NYSE:CNM) Beats Q1 Sales Targets
Water and fire protection solutions company Core & Main (NYSE:CNM) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 9.8% year on year to $1.91 billion. On the other hand, the company's full-year revenue guidance of $7.7 billion at the midpoint came in 0.6% below analysts' estimates. Its GAAP profit of $0.52 per share was in line with analysts' consensus estimates. Is now the time to buy Core & Main? Find out in our full research report. Revenue: $1.91 billion vs analyst estimates of $1.85 billion (9.8% year-on-year growth, 3.5% beat) EPS (GAAP): $0.52 vs analyst estimates of $0.51 (in line) Adjusted EBITDA: $224 million vs analyst estimates of $225 million (11.7% margin, in line) The company reconfirmed its revenue guidance for the full year of $7.7 billion at the midpoint EBITDA guidance for the full year is $975 million at the midpoint, below analyst estimates of $982.9 million Operating Margin: 8.9%, in line with the same quarter last year Free Cash Flow Margin: 3.3%, similar to the same quarter last year Market Capitalization: $11.24 billion 'We are proud to report another quarter of record performance that showcases the resilience of our end markets and the strength of our business model,' said Mark Witkowski, CEO of Core & Main. Formerly a division of industrial distributor HD Supply, Core & Main (NYSE:CNM) is a provider of water, wastewater, and fire protection products and services. A company's long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Luckily, Core & Main's sales grew at an incredible 17.1% compounded annual growth rate over the last five years. Its growth beat the average industrials company and shows its offerings resonate with customers, a helpful starting point for our analysis. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Core & Main's recent performance shows its demand has slowed significantly as its annualized revenue growth of 7.2% over the last two years was well below its five-year trend. This quarter, Core & Main reported year-on-year revenue growth of 9.8%, and its $1.91 billion of revenue exceeded Wall Street's estimates by 3.5%. Looking ahead, sell-side analysts expect revenue to grow 2.8% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and implies its products and services will face some demand challenges. At least the company is tracking well in other measures of financial health. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Core & Main has done a decent job managing its cost base over the last five years. The company has produced an average operating margin of 9.8%, higher than the broader industrials sector. Looking at the trend in its profitability, Core & Main's operating margin rose by 3.8 percentage points over the last five years, as its sales growth gave it operating leverage. In Q1, Core & Main generated an operating margin profit margin of 8.9%, in line with the same quarter last year. This indicates the company's cost structure has recently been stable. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Core & Main's EPS grew at an astounding 72.9% compounded annual growth rate over the last five years, higher than its 17.1% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Diving into Core & Main's quality of earnings can give us a better understanding of its performance. As we mentioned earlier, Core & Main's operating margin was flat this quarter but expanded by 3.8 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; taxes and interest expenses can also affect EPS but don't tell us as much about a company's fundamentals. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For Core & Main, its two-year annual EPS growth of 18.4% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future. In Q1, Core & Main reported EPS at $0.52, up from $0.47 in the same quarter last year. This print beat analysts' estimates by 1.3%. Over the next 12 months, Wall Street expects Core & Main's full-year EPS of $2.09 to grow 18.2%. We were impressed by how significantly Core & Main blew past analysts' revenue expectations this quarter. On the other hand, its full-year revenue and EBITDA guidance slightly missed Wall Street's estimates. Zooming out, we think this was a mixed quarter. The stock remained flat at $59 immediately after reporting. Is Core & Main an attractive investment opportunity right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17 hours ago
- Business
- Yahoo
Core & Main (CNM) Matches Q1 Earnings Estimates
Core & Main (CNM) came out with quarterly earnings of $0.52 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.49 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this distributor of water and fire protection products would post earnings of $0.36 per share when it actually produced earnings of $0.33, delivering a surprise of -8.33%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Core & Main , which belongs to the Zacks Manufacturing - Tools & Related Products industry, posted revenues of $1.91 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 4.29%. This compares to year-ago revenues of $1.74 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Core & Main shares have added about 16.5% since the beginning of the year versus the S&P 500's gain of 2.1%. While Core & Main has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Core & Main: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.75 on $2.11 billion in revenues for the coming quarter and $2.43 on $7.71 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - Tools & Related Products is currently in the bottom 11% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Apogee Enterprises (APOG), another stock in the broader Zacks Industrial Products sector, has yet to report results for the quarter ended May 2025. This glass products company is expected to post quarterly earnings of $0.50 per share in its upcoming report, which represents a year-over-year change of -65.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Apogee Enterprises' revenues are expected to be $323.7 million, down 2.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Core & Main, Inc. (CNM) : Free Stock Analysis Report Apogee Enterprises, Inc. (APOG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Business Wire
a day ago
- Business
- Business Wire
Core & Main Announces Record Fiscal 2025 First Quarter Results
ST. LOUIS--(BUSINESS WIRE)-- Core & Main, Inc. (NYSE: CNM) ("Core & Main"), a leading specialty distributor dedicated to advancing reliable infrastructure with local service, nationwide, today announced financial results for the first quarter ended May 4, 2025. Fiscal 2025 First Quarter Results (Compared with Fiscal 2024 First Quarter) Net sales increased 9.8% to $1,911 million Gross profit increased 9.0% to $510 million; gross profit margin was 26.7% Net income increased 4.0% to $105 million Diluted earnings per share increased 6.1% to $0.52 Adjusted EBITDA (Non-GAAP) increased 3.2% to $224 million Net cash provided by operating activities of $77 million Repurchased $39 million of shares at an average per share price of approximately $46.64 'We are proud to report another quarter of record performance that showcases the resilience of our end markets and the strength of our business model,' said Mark Witkowski, CEO of Core & Main. 'Our associates executed exceptionally well, generating continued market outperformance with a sequential step up in volume growth from last quarter. We were particularly pleased with our gross margin performance in the first quarter, as we continued to deliver on the value of our initiatives to achieve sequential margin expansion. With a broad range of products and services, Core & Main is uniquely positioned to capture the benefits of investments needed to address aging water infrastructure across the U.S. As the macro environment continues to evolve, I am confident in our team's ability to adapt and maintain our focus on delivering the critical products and solutions valued by our customers and communities. Against this backdrop, we are reaffirming our full year outlook for net sales, Adjusted EBITDA and operating cash flow." Three Months Ended May 4, 2025 Net sales for the three months ended May 4, 2025 increased $170 million, or 9.8%, to $1,911 million compared with $1,741 million for the three months ended April 28, 2024. Net sales increased primarily due to higher volumes and acquisitions. Net sales increased for pipes, valves & fittings, storm drainage and meter products due to higher volumes and acquisitions. Net sales for fire protection products declined due to lower end-market volumes and lower selling prices partially offset by acquisitions. Gross profit for the three months ended May 4, 2025 increased $42 million, or 9.0%, to $510 million compared with $468 million for the three months ended April 28, 2024. Gross profit as a percentage of net sales for the three months ended May 4, 2025 was 26.7% compared with 26.9% for the three months ended April 28, 2024. The overall decrease in gross profit as a percentage of net sales was primarily attributable to a higher average cost of inventory this year compared to the prior year partially offset by favorable impacts from the execution of our gross margin initiatives and accretive acquisitions. Selling, general and administrative ("SG&A") expenses for the three months ended May 4, 2025 increased $36 million, or 14.0%, to $293 million compared with $257 million during the three months ended April 28, 2024. The increase is primarily attributable to higher personnel expenses, primarily attributable to acquisitions, inflation and other distribution-related costs due to an increase in sales volume. SG&A expenses as a percentage of net sales were 15.3% for the three months ended May 4, 2025 compared with 14.8% for the three months ended April 28, 2024. The increase was primarily attributable to acquisitions and inflationary cost impacts. Operating income for the three months ended May 4, 2025 increased $3 million, or 1.8%, to $171 million compared with $168 million during the three months ended April 28, 2024. The increase in operating income was primarily attributable to higher gross profit partially offset by higher SG&A and depreciation and amortization expenses. Net income for the three months ended May 4, 2025 increased $4 million, or 4.0%, to $105 million compared with $101 million for the three months ended April 28, 2024. The increase in net income was primarily attributable to a 1.8% increase in operating income and a decrease in interest expense partially offset by an increase in income tax expense. The Class A common stock basic earnings per share for the three months ended May 4, 2025 increased 8.2% to $0.53 compared with $0.49 for the three months ended April 28, 2024. The Class A common stock diluted earnings per share for the three months ended May 4, 2025 increased 6.1% to $0.52 compared with $0.49 for the three months ended April 28, 2024. The basic earnings per share increased due to an increase in net income attributable to Core & Main, Inc. and lower Class A share counts following the share repurchase transactions executed throughout fiscal 2024 and fiscal 2025. Diluted earnings per share increased due to an increase in net income and lower Class A share counts following the share repurchase transactions executed throughout fiscal 2024 and fiscal 2025. Adjusted EBITDA for the three months ended May 4, 2025 increased $7 million, or 3.2%, to $224 million compared with $217 million for the three months ended April 28, 2024. The increase in Adjusted EBITDA was primarily attributable to higher gross profit partially offset by higher SG&A expenses. For a reconciliation of Adjusted EBITDA to net income or net income attributable to Core & Main, Inc., the most comparable GAAP (as defined below) financial metric, as applicable, see 'Non-GAAP Financial Measures' below. Liquidity and Capital Resources Net cash provided by operating activities was $77 million for the three months ended May 4, 2025 compared with $78 million for the three months ended April 28, 2024. The $1 million decrease in cash provided by operating activities was due to a higher investment in working capital in the three months ended May 4, 2025 partially offset by the timing of interest payments, lower tax payments and an increase in net income. Net Debt, calculated as gross consolidated debt net of cash and cash equivalents, as of May 4, 2025 was $2,276 million compared with $2,419 million as of April 28, 2024. The decrease in Net Debt was primarily attributable to lower borrowings on our senior asset-based revolving credit facility ("Senior ABL Credit Facility"). As of May 4, 2025, we had $100 million outstanding borrowings on our Senior ABL Credit Facility, which provides for borrowings of up to $1,250 million, subject to borrowing base availability. As of May 4, 2025, after giving effect to approximately $15 million of letters of credit issued under the Senior ABL Credit Facility, Core & Main LP would have been able to borrow approximately $1,135 million under the Senior ABL Credit Facility, subject to borrowing base availability. Fiscal 2025 Outlook Core & Main reaffirms its full-year outlook issued in March for fiscal 2025, a 52-week year compared to fiscal 2024, a 53-week year. Net sales of $7,600 to $7,800 million Net sales growth of 2% to 5%, reflecting average daily sales growth of 4% to 7% Adjusted EBITDA (Non-GAAP) of $950 to $1,000 million Adjusted EBITDA margin (Non-GAAP) of 12.5% to 12.8% Operating Cash Flow of $570 to $650 million Conference Call & Webcast Information Core & Main will host a conference call and webcast on June 10, 2025 at 8:30 a.m. ET to discuss the company's financial results. The live webcast will be accessible via the events calendar at The conference call may also be accessed by dialing 833-470-1428 or +1-404-975-4839 (international). The passcode for the call is 528579. To ensure participants are connected for the full call, please dial in at least 10 minutes prior to the start of the call. An archived version of the webcast will be available immediately following the call. A slide presentation highlighting Core & Main's results will also be made available on the Investor Relations section of Core & Main's website prior to the call. About Core & Main Based in St. Louis, Core & Main is a leader in advancing reliable infrastructure® with local service, nationwide®. As a specialty distributor with a focus on water, wastewater, storm drainage and fire protection products and related services, Core & Main provides solutions to municipalities, private water companies and professional contractors across municipal, non-residential and residential end markets. With more than 370 locations across the U.S., the company provides its customers local expertise backed by a national supply chain. The 5,700 associates at Core & Main are committed to helping their communities thrive with safe and reliable infrastructure. Visit to learn more. Cautionary Note Regarding Forward-Looking Statements This press release contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, without limitation, all statements other than statements of historical facts contained in this press release, including statements relating to our intentions, beliefs, assumptions or current expectations concerning, among other things, our future results of operations and financial position, business strategy and plans and objectives of management for future operations, including, among others, statements regarding expected growth, future capital expenditures, capital allocation and debt service obligations, and the anticipated impact on our business. Some of the forward-looking statements can be identified by the use of forward-looking terms such as 'believes,' 'expects,' 'may,' 'will,' 'shall,' 'should,' 'would,' 'could,' 'seeks,' 'aims,' 'projects,' 'is optimistic,' 'intends,' 'plans,' 'estimates,' 'anticipates' or the negative versions of these words or other comparable terms. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be outside our control. We caution you that forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes, including, without limitation, our actual results of operations, financial condition and liquidity, and the development of the market in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if our results of operations, financial condition, cash flows and the development of the market in which we operate are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. A number of important factors, including, without limitation, the risks and uncertainties discussed under the captions 'Risk Factors' in our Annual Report on Form 10-K for the fiscal year ended February 2, 2025 and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' in our Annual Report on Form 10-K for the fiscal year ended February 2, 2025, could cause actual results and outcomes to differ materially from those reflected in the forward-looking statements. Furthermore, new risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. Factors that could cause actual results and outcomes to differ from those reflected in forward-looking statements include, without limitation, declines, volatility and cyclicality in the U.S. residential and non-residential construction markets; slowdowns in municipal infrastructure spending and delays in appropriations of federal funds; our ability to competitively bid for contracts; price fluctuations in our product costs (including effects of tariffs); our ability to manage our inventory effectively, including during periods of supply chain disruptions; risks involved with acquisitions and other strategic transactions, including our ability to identify, acquire, close or integrate acquisition targets successfully; the fragmented and highly competitive markets in which we compete and consolidation within our industry; the development of alternatives to distributors of our products in the supply chain; our ability to hire, engage and retain key personnel, including sales representatives, qualified branch, district and regional managers and senior management; our ability to identify, develop and maintain relationships with a sufficient number of qualified suppliers and the potential that our exclusive or limited supplier distribution rights are terminated; changes in supplier rebates or other terms of our supplier agreements; the availability of freight; the ability of our customers to make payments on credit sales; our ability to identify and introduce new products and product lines effectively; the spread of, and response to, public health crises and the inability to predict the ultimate impact on us; costs and potential liabilities or obligations imposed by environmental, health and safety laws and requirements; regulatory change and the costs of compliance with regulation; changes in stakeholder expectations in respect of environmental, social and governance and sustainability practices; exposure to product liability, construction defect and warranty claims and other litigation and legal proceedings; potential harm to our brand or reputation; difficulties with or interruptions of our fabrication services; safety and labor risks associated with the distribution of our products; interruptions in the proper functioning of our and our third-party service providers' information technology systems, including from cybersecurity threats; impairment in the carrying value of goodwill, intangible assets or other long-lived assets; our ability to continue our customer relationships with short-term contracts; risks associated with operating internationally, including exporting and importing of certain products; our indebtedness and the potential that we may incur additional indebtedness that might restrict our operating flexibility; the limitations and restrictions in the agreements governing our indebtedness, the Amended and Restated Limited Partnership Agreement of Core & Main Holdings, LP, as amended, and the Tax Receivable Agreements (each as defined in our Annual Report on Form 10-K for the fiscal year ended February 2, 2025); increases in interest rates on our variable rate indebtedness; changes in our credit ratings and outlook; our ability to generate the significant amount of cash needed to service our indebtedness; our organizational structure, including our payment obligations under the Tax Receivable Agreements, which may be significant; our ability to sustain an active, liquid trading market for our Class A common stock; and risks related to other factors discussed under 'Risk Factors' in our Annual Report on Form 10-K for the fiscal year ended February 2, 2025. Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made and, except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. CORE & MAIN, INC. CONDENSED CONSOLIDATED BALANCE SHEETS Amounts in millions (except share and per share data), unaudited May 4, 2025 ASSETS Current assets: Cash and cash equivalents $ 8 $ 8 Receivables, net of allowance for credit losses of $21 and $18, respectively 1,319 1,066 Inventories 1,069 908 Prepaid expenses and other current assets 48 43 Total current assets 2,444 2,025 Property, plant and equipment, net 174 168 Operating lease right-of-use assets 265 244 Intangible assets, net 901 935 Goodwill 1,899 1,898 Deferred income taxes 566 558 Other assets 29 42 Total assets $ 6,278 $ 5,870 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt $ 24 $ 24 Accounts payable 923 562 Accrued compensation and benefits 68 123 Current operating lease liabilities 70 67 Other current liabilities 161 90 Total current liabilities 1,246 866 Long-term debt 2,239 2,237 Non-current operating lease liabilities 196 178 Deferred income taxes 87 87 Tax receivable agreement liabilities 669 706 Other liabilities 20 22 Total liabilities 4,457 4,096 Commitments and contingencies Class A common stock, par value $0.01 per share, 1,000,000,000 shares authorized, 189,451,269 and 189,815,899 shares issued and outstanding as of May 4, 2025 and February 2, 2025, respectively 2 2 Class B common stock, par value $0.01 per share, 500,000,000 shares authorized, 7,649,490 and 7,936,061 shares issued and outstanding as of May 4, 2025 and February 2, 2025, respectively — — Additional paid-in capital 1,220 1,220 Retained earnings 515 449 Accumulated other comprehensive income 7 27 Total stockholders' equity attributable to Core & Main, Inc. 1,744 1,698 Non-controlling interests 77 76 Total stockholders' equity 1,821 1,774 Total liabilities and stockholders' equity $ 6,278 $ 5,870 Expand CORE & MAIN, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Amounts in millions, unaudited Three Months Ended May 4, 2025 April 28, 2024 Cash Flows From Operating Activities: Net income $ 105 $ 101 Adjustments to reconcile net cash from operating activities: Depreciation and amortization 48 46 Equity-based compensation expense 5 3 Deferred income tax expense 3 2 Other 4 2 Changes in assets and liabilities: (Increase) decrease in receivables (257 ) (170 ) (Increase) decrease in inventories (163 ) (104 ) (Increase) decrease in other assets (5 ) (17 ) Increase (decrease) in accounts payable 361 244 Increase (decrease) in accrued liabilities (24 ) (29 ) Net cash provided by operating activities 77 78 Cash Flows From Investing Activities: Capital expenditures (13 ) (7 ) Acquisitions of businesses, net of cash acquired — (564 ) Other (3 ) (3 ) Net cash used in investing activities (16 ) (574 ) Cash Flows From Financing Activities: Repurchase and retirement of equity interests (39 ) — Distributions to non-controlling interest holders (2 ) (4 ) Payments pursuant to Tax Receivable Agreements (18 ) (11 ) Borrowings on asset-based revolving credit facility 100 585 Repayments on asset-based revolving credit facility (93 ) (774 ) Issuance of long-term debt — 750 Repayments of long-term debt (6 ) (6 ) Debt issuance costs — (12 ) Other (3 ) (3 ) Net cash (used in) provided by financing activities (61 ) 525 Increase in cash and cash equivalents — 29 Cash and cash equivalents at the beginning of the period 8 1 Cash and cash equivalents at the end of the period $ 8 $ 30 Cash paid for interest (excluding effects of interest rate swap) $ 14 $ 34 Cash paid for income taxes 29 47 Expand Non-GAAP Financial Measures In addition to providing results that are determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"), we present EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Net Debt, all of which are non-GAAP financial measures. These measures are not considered measures of financial performance or liquidity under GAAP and the items excluded therefrom are significant components in understanding and assessing our financial performance or liquidity. These measures should not be considered in isolation or as alternatives to GAAP measures such as net income or net income attributable to Core & Main, Inc., as applicable, or other financial statement data presented in our financial statements as an indicator of our financial performance or liquidity. We define EBITDA as net income or net income attributable to Core & Main, Inc., as applicable, adjusted for non-controlling interests, depreciation and amortization, provision for income taxes and interest expense. We define Adjusted EBITDA as EBITDA as further adjusted for certain items management believes are not reflective of the underlying operations of our business, including but not limited to (a) loss on debt modification and extinguishment, (b) equity-based compensation, (c) expenses associated with the initial public offering and subsequent offerings and (d) expenses associated with acquisition activities. Net income attributable to Core & Main, Inc. is the most directly comparable GAAP measure to EBITDA and Adjusted EBITDA. We define Adjusted EBITDA margin as Adjusted EBITDA divided by net sales. We define Net Debt as total consolidated debt (gross of unamortized discounts and debt issuance costs), net of cash and cash equivalents. We use EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Net Debt to assess the operating results and effectiveness and efficiency of our business. Adjusted EBITDA includes amounts otherwise attributable to non-controlling interests as we manage the consolidated Company and evaluate operating performance in a similar manner. We present these non-GAAP financial measures because we believe that investors consider them to be important supplemental measures of performance, and we believe that these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. Non-GAAP financial measures as reported by us may not be comparable to similarly titled metrics reported by other companies and may not be calculated in the same manner. These measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. For example, EBITDA and Adjusted EBITDA: do not reflect the significant interest expense or the cash requirements necessary to service interest or principal payments on debt; do not reflect income tax expenses, the cash requirements to pay taxes or related distributions; do not reflect cash requirements to replace in the future any assets being depreciated and amortized; and exclude certain transactions or expenses as allowed by the various agreements governing our indebtedness. EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Net Debt are not alternative measures of financial performance or liquidity under GAAP and therefore should be considered in conjunction with net income, net income attributable to Core & Main, Inc. and other performance measures such as gross profit or net cash provided by or used in operating, investing or financing activities and not as alternatives to such GAAP measures. In evaluating Adjusted EBITDA, you should be aware that, in the future, we may incur expenses similar to those eliminated in this presentation. No reconciliation of the estimated range for Adjusted EBITDA or Adjusted EBITDA margin for fiscal 2025 is included herein because we are unable to quantify certain amounts that would be required to be included in net income attributable to Core & Main, Inc., the most directly comparable GAAP measure, without unreasonable efforts due to the high variability and difficulty to predict certain items excluded from Adjusted EBITDA. Consequently, we believe such reconciliation would imply a degree of precision that would be misleading to investors. In particular, the effects of acquisition expenses cannot be reasonably predicted in light of the inherent difficulty in quantifying such items on a forward-looking basis. We expect the variability of these excluded items may have an unpredictable, and potentially significant, impact on our future GAAP financial results. The following table sets forth a reconciliation of net income or net income attributable to Core & Main, Inc. to EBITDA and Adjusted EBITDA for the periods presented: (1) Includes depreciation of certain assets which are reflected in 'cost of sales' in our Statement of Operations. (2) Represents expenses associated with acquisition activities, including transaction costs, post-acquisition employee retention bonuses, severance payments, expense recognition of purchase accounting fair value adjustments (excluding amortization). Expand The following table sets forth a calculation of Net Debt for the periods presented:
Yahoo
a day ago
- Business
- Yahoo
Core & Main Announces Record Fiscal 2025 First Quarter Results
ST. LOUIS, June 10, 2025--(BUSINESS WIRE)--Core & Main, Inc. (NYSE: CNM) ("Core & Main"), a leading specialty distributor dedicated to advancing reliable infrastructure with local service, nationwide, today announced financial results for the first quarter ended May 4, 2025. Fiscal 2025 First Quarter Results (Compared with Fiscal 2024 First Quarter) Net sales increased 9.8% to $1,911 million Gross profit increased 9.0% to $510 million; gross profit margin was 26.7% Net income increased 4.0% to $105 million Diluted earnings per share increased 6.1% to $0.52 Adjusted EBITDA (Non-GAAP) increased 3.2% to $224 million Net cash provided by operating activities of $77 million Repurchased $39 million of shares at an average per share price of approximately $46.64 "We are proud to report another quarter of record performance that showcases the resilience of our end markets and the strength of our business model," said Mark Witkowski, CEO of Core & Main. "Our associates executed exceptionally well, generating continued market outperformance with a sequential step up in volume growth from last quarter. We were particularly pleased with our gross margin performance in the first quarter, as we continued to deliver on the value of our initiatives to achieve sequential margin expansion. With a broad range of products and services, Core & Main is uniquely positioned to capture the benefits of investments needed to address aging water infrastructure across the U.S. As the macro environment continues to evolve, I am confident in our team's ability to adapt and maintain our focus on delivering the critical products and solutions valued by our customers and communities. Against this backdrop, we are reaffirming our full year outlook for net sales, Adjusted EBITDA and operating cash flow." Three Months Ended May 4, 2025 Net sales for the three months ended May 4, 2025 increased $170 million, or 9.8%, to $1,911 million compared with $1,741 million for the three months ended April 28, 2024. Net sales increased primarily due to higher volumes and acquisitions. Net sales increased for pipes, valves & fittings, storm drainage and meter products due to higher volumes and acquisitions. Net sales for fire protection products declined due to lower end-market volumes and lower selling prices partially offset by acquisitions. Gross profit for the three months ended May 4, 2025 increased $42 million, or 9.0%, to $510 million compared with $468 million for the three months ended April 28, 2024. Gross profit as a percentage of net sales for the three months ended May 4, 2025 was 26.7% compared with 26.9% for the three months ended April 28, 2024. The overall decrease in gross profit as a percentage of net sales was primarily attributable to a higher average cost of inventory this year compared to the prior year partially offset by favorable impacts from the execution of our gross margin initiatives and accretive acquisitions. Selling, general and administrative ("SG&A") expenses for the three months ended May 4, 2025 increased $36 million, or 14.0%, to $293 million compared with $257 million during the three months ended April 28, 2024. The increase is primarily attributable to higher personnel expenses, primarily attributable to acquisitions, inflation and other distribution-related costs due to an increase in sales volume. SG&A expenses as a percentage of net sales were 15.3% for the three months ended May 4, 2025 compared with 14.8% for the three months ended April 28, 2024. The increase was primarily attributable to acquisitions and inflationary cost impacts. Operating income for the three months ended May 4, 2025 increased $3 million, or 1.8%, to $171 million compared with $168 million during the three months ended April 28, 2024. The increase in operating income was primarily attributable to higher gross profit partially offset by higher SG&A and depreciation and amortization expenses. Net income for the three months ended May 4, 2025 increased $4 million, or 4.0%, to $105 million compared with $101 million for the three months ended April 28, 2024. The increase in net income was primarily attributable to a 1.8% increase in operating income and a decrease in interest expense partially offset by an increase in income tax expense. The Class A common stock basic earnings per share for the three months ended May 4, 2025 increased 8.2% to $0.53 compared with $0.49 for the three months ended April 28, 2024. The Class A common stock diluted earnings per share for the three months ended May 4, 2025 increased 6.1% to $0.52 compared with $0.49 for the three months ended April 28, 2024. The basic earnings per share increased due to an increase in net income attributable to Core & Main, Inc. and lower Class A share counts following the share repurchase transactions executed throughout fiscal 2024 and fiscal 2025. Diluted earnings per share increased due to an increase in net income and lower Class A share counts following the share repurchase transactions executed throughout fiscal 2024 and fiscal 2025. Adjusted EBITDA for the three months ended May 4, 2025 increased $7 million, or 3.2%, to $224 million compared with $217 million for the three months ended April 28, 2024. The increase in Adjusted EBITDA was primarily attributable to higher gross profit partially offset by higher SG&A expenses. For a reconciliation of Adjusted EBITDA to net income or net income attributable to Core & Main, Inc., the most comparable GAAP (as defined below) financial metric, as applicable, see "Non-GAAP Financial Measures" below. Liquidity and Capital Resources Net cash provided by operating activities was $77 million for the three months ended May 4, 2025 compared with $78 million for the three months ended April 28, 2024. The $1 million decrease in cash provided by operating activities was due to a higher investment in working capital in the three months ended May 4, 2025 partially offset by the timing of interest payments, lower tax payments and an increase in net income. Net Debt, calculated as gross consolidated debt net of cash and cash equivalents, as of May 4, 2025 was $2,276 million compared with $2,419 million as of April 28, 2024. The decrease in Net Debt was primarily attributable to lower borrowings on our senior asset-based revolving credit facility ("Senior ABL Credit Facility"). As of May 4, 2025, we had $100 million outstanding borrowings on our Senior ABL Credit Facility, which provides for borrowings of up to $1,250 million, subject to borrowing base availability. As of May 4, 2025, after giving effect to approximately $15 million of letters of credit issued under the Senior ABL Credit Facility, Core & Main LP would have been able to borrow approximately $1,135 million under the Senior ABL Credit Facility, subject to borrowing base availability. Fiscal 2025 Outlook Core & Main reaffirms its full-year outlook issued in March for fiscal 2025, a 52-week year compared to fiscal 2024, a 53-week year. Net sales of $7,600 to $7,800 million Net sales growth of 2% to 5%, reflecting average daily sales growth of 4% to 7% Adjusted EBITDA (Non-GAAP) of $950 to $1,000 million Adjusted EBITDA margin (Non-GAAP) of 12.5% to 12.8% Operating Cash Flow of $570 to $650 million Conference Call & Webcast Information Core & Main will host a conference call and webcast on June 10, 2025 at 8:30 a.m. ET to discuss the company's financial results. The live webcast will be accessible via the events calendar at The conference call may also be accessed by dialing 833-470-1428 or +1-404-975-4839 (international). The passcode for the call is 528579. To ensure participants are connected for the full call, please dial in at least 10 minutes prior to the start of the call. An archived version of the webcast will be available immediately following the call. A slide presentation highlighting Core & Main's results will also be made available on the Investor Relations section of Core & Main's website prior to the call. About Core & Main Based in St. Louis, Core & Main is a leader in advancing reliable infrastructure® with local service, nationwide®. As a specialty distributor with a focus on water, wastewater, storm drainage and fire protection products and related services, Core & Main provides solutions to municipalities, private water companies and professional contractors across municipal, non-residential and residential end markets. With more than 370 locations across the U.S., the company provides its customers local expertise backed by a national supply chain. The 5,700 associates at Core & Main are committed to helping their communities thrive with safe and reliable infrastructure. Visit to learn more. Cautionary Note Regarding Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, without limitation, all statements other than statements of historical facts contained in this press release, including statements relating to our intentions, beliefs, assumptions or current expectations concerning, among other things, our future results of operations and financial position, business strategy and plans and objectives of management for future operations, including, among others, statements regarding expected growth, future capital expenditures, capital allocation and debt service obligations, and the anticipated impact on our business. Some of the forward-looking statements can be identified by the use of forward-looking terms such as "believes," "expects," "may," "will," "shall," "should," "would," "could," "seeks," "aims," "projects," "is optimistic," "intends," "plans," "estimates," "anticipates" or the negative versions of these words or other comparable terms. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be outside our control. We caution you that forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes, including, without limitation, our actual results of operations, financial condition and liquidity, and the development of the market in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if our results of operations, financial condition, cash flows and the development of the market in which we operate are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. A number of important factors, including, without limitation, the risks and uncertainties discussed under the captions "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended February 2, 2025 and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the fiscal year ended February 2, 2025, could cause actual results and outcomes to differ materially from those reflected in the forward-looking statements. Furthermore, new risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. Factors that could cause actual results and outcomes to differ from those reflected in forward-looking statements include, without limitation, declines, volatility and cyclicality in the U.S. residential and non-residential construction markets; slowdowns in municipal infrastructure spending and delays in appropriations of federal funds; our ability to competitively bid for contracts; price fluctuations in our product costs (including effects of tariffs); our ability to manage our inventory effectively, including during periods of supply chain disruptions; risks involved with acquisitions and other strategic transactions, including our ability to identify, acquire, close or integrate acquisition targets successfully; the fragmented and highly competitive markets in which we compete and consolidation within our industry; the development of alternatives to distributors of our products in the supply chain; our ability to hire, engage and retain key personnel, including sales representatives, qualified branch, district and regional managers and senior management; our ability to identify, develop and maintain relationships with a sufficient number of qualified suppliers and the potential that our exclusive or limited supplier distribution rights are terminated; changes in supplier rebates or other terms of our supplier agreements; the availability of freight; the ability of our customers to make payments on credit sales; our ability to identify and introduce new products and product lines effectively; the spread of, and response to, public health crises and the inability to predict the ultimate impact on us; costs and potential liabilities or obligations imposed by environmental, health and safety laws and requirements; regulatory change and the costs of compliance with regulation; changes in stakeholder expectations in respect of environmental, social and governance and sustainability practices; exposure to product liability, construction defect and warranty claims and other litigation and legal proceedings; potential harm to our brand or reputation; difficulties with or interruptions of our fabrication services; safety and labor risks associated with the distribution of our products; interruptions in the proper functioning of our and our third-party service providers' information technology systems, including from cybersecurity threats; impairment in the carrying value of goodwill, intangible assets or other long-lived assets; our ability to continue our customer relationships with short-term contracts; risks associated with operating internationally, including exporting and importing of certain products; our indebtedness and the potential that we may incur additional indebtedness that might restrict our operating flexibility; the limitations and restrictions in the agreements governing our indebtedness, the Amended and Restated Limited Partnership Agreement of Core & Main Holdings, LP, as amended, and the Tax Receivable Agreements (each as defined in our Annual Report on Form 10-K for the fiscal year ended February 2, 2025); increases in interest rates on our variable rate indebtedness; changes in our credit ratings and outlook; our ability to generate the significant amount of cash needed to service our indebtedness; our organizational structure, including our payment obligations under the Tax Receivable Agreements, which may be significant; our ability to sustain an active, liquid trading market for our Class A common stock; and risks related to other factors discussed under "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended February 2, 2025. Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made and, except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. CORE & MAIN, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Amounts in millions (except share and per share data), unaudited Three Months Ended May 4, 2025 April 28, 2024 Net sales $ 1,911 $ 1,741 Cost of sales 1,401 1,273 Gross profit 510 468 Operating expenses: Selling, general and administrative 293 257 Depreciation and amortization 46 43 Total operating expenses 339 300 Operating income 171 168 Interest expense 30 34 Income before provision for income taxes 141 134 Provision for income taxes 36 33 Net income 105 101 Less: net income attributable to non-controlling interests 5 6 Net income attributable to Core & Main, Inc. $ 100 $ 95 Earnings per share ("EPS") Basic $ 0.53 $ 0.49 Diluted $ 0.52 $ 0.49 Number of shares used in computing EPS Basic 189,802,381 192,194,061 Diluted 198,700,476 202,615,824 CORE & MAIN, INC. CONDENSED CONSOLIDATED BALANCE SHEETS Amounts in millions (except share and per share data), unaudited May 4, 2025 February 2, 2025 ASSETS Current assets: Cash and cash equivalents $ 8 $ 8 Receivables, net of allowance for credit losses of $21 and $18, respectively 1,319 1,066 Inventories 1,069 908 Prepaid expenses and other current assets 48 43 Total current assets 2,444 2,025 Property, plant and equipment, net 174 168 Operating lease right-of-use assets 265 244 Intangible assets, net 901 935 Goodwill 1,899 1,898 Deferred income taxes 566 558 Other assets 29 42 Total assets $ 6,278 $ 5,870 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt $ 24 $ 24 Accounts payable 923 562 Accrued compensation and benefits 68 123 Current operating lease liabilities 70 67 Other current liabilities 161 90 Total current liabilities 1,246 866 Long-term debt 2,239 2,237 Non-current operating lease liabilities 196 178 Deferred income taxes 87 87 Tax receivable agreement liabilities 669 706 Other liabilities 20 22 Total liabilities 4,457 4,096 Commitments and contingencies Class A common stock, par value $0.01 per share, 1,000,000,000 shares authorized, 189,451,269 and 189,815,899 shares issued and outstanding as of May 4, 2025 and February 2, 2025, respectively 2 2 Class B common stock, par value $0.01 per share, 500,000,000 shares authorized, 7,649,490 and 7,936,061 shares issued and outstanding as of May 4, 2025 and February 2, 2025, respectively — — Additional paid-in capital 1,220 1,220 Retained earnings 515 449 Accumulated other comprehensive income 7 27 Total stockholders' equity attributable to Core & Main, Inc. 1,744 1,698 Non-controlling interests 77 76 Total stockholders' equity 1,821 1,774 Total liabilities and stockholders' equity $ 6,278 $ 5,870 CORE & MAIN, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Amounts in millions, unaudited Three Months Ended May 4, 2025 April 28, 2024 Cash Flows From Operating Activities: Net income $ 105 $ 101 Adjustments to reconcile net cash from operating activities: Depreciation and amortization 48 46 Equity-based compensation expense 5 3 Deferred income tax expense 3 2 Other 4 2 Changes in assets and liabilities: (Increase) decrease in receivables (257 ) (170 ) (Increase) decrease in inventories (163 ) (104 ) (Increase) decrease in other assets (5 ) (17 ) Increase (decrease) in accounts payable 361 244 Increase (decrease) in accrued liabilities (24 ) (29 ) Net cash provided by operating activities 77 78 Cash Flows From Investing Activities: Capital expenditures (13 ) (7 ) Acquisitions of businesses, net of cash acquired — (564 ) Other (3 ) (3 ) Net cash used in investing activities (16 ) (574 ) Cash Flows From Financing Activities: Repurchase and retirement of equity interests (39 ) — Distributions to non-controlling interest holders (2 ) (4 ) Payments pursuant to Tax Receivable Agreements (18 ) (11 ) Borrowings on asset-based revolving credit facility 100 585 Repayments on asset-based revolving credit facility (93 ) (774 ) Issuance of long-term debt — 750 Repayments of long-term debt (6 ) (6 ) Debt issuance costs — (12 ) Other (3 ) (3 ) Net cash (used in) provided by financing activities (61 ) 525 Increase in cash and cash equivalents — 29 Cash and cash equivalents at the beginning of the period 8 1 Cash and cash equivalents at the end of the period $ 8 $ 30 Cash paid for interest (excluding effects of interest rate swap) $ 14 $ 34 Cash paid for income taxes 29 47 Non-GAAP Financial Measures In addition to providing results that are determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"), we present EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Net Debt, all of which are non-GAAP financial measures. These measures are not considered measures of financial performance or liquidity under GAAP and the items excluded therefrom are significant components in understanding and assessing our financial performance or liquidity. These measures should not be considered in isolation or as alternatives to GAAP measures such as net income or net income attributable to Core & Main, Inc., as applicable, or other financial statement data presented in our financial statements as an indicator of our financial performance or liquidity. We define EBITDA as net income or net income attributable to Core & Main, Inc., as applicable, adjusted for non-controlling interests, depreciation and amortization, provision for income taxes and interest expense. We define Adjusted EBITDA as EBITDA as further adjusted for certain items management believes are not reflective of the underlying operations of our business, including but not limited to (a) loss on debt modification and extinguishment, (b) equity-based compensation, (c) expenses associated with the initial public offering and subsequent offerings and (d) expenses associated with acquisition activities. Net income attributable to Core & Main, Inc. is the most directly comparable GAAP measure to EBITDA and Adjusted EBITDA. We define Adjusted EBITDA margin as Adjusted EBITDA divided by net sales. We define Net Debt as total consolidated debt (gross of unamortized discounts and debt issuance costs), net of cash and cash equivalents. We use EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Net Debt to assess the operating results and effectiveness and efficiency of our business. Adjusted EBITDA includes amounts otherwise attributable to non-controlling interests as we manage the consolidated Company and evaluate operating performance in a similar manner. We present these non-GAAP financial measures because we believe that investors consider them to be important supplemental measures of performance, and we believe that these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. Non-GAAP financial measures as reported by us may not be comparable to similarly titled metrics reported by other companies and may not be calculated in the same manner. These measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. For example, EBITDA and Adjusted EBITDA: do not reflect the significant interest expense or the cash requirements necessary to service interest or principal payments on debt; do not reflect income tax expenses, the cash requirements to pay taxes or related distributions; do not reflect cash requirements to replace in the future any assets being depreciated and amortized; and exclude certain transactions or expenses as allowed by the various agreements governing our indebtedness. EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Net Debt are not alternative measures of financial performance or liquidity under GAAP and therefore should be considered in conjunction with net income, net income attributable to Core & Main, Inc. and other performance measures such as gross profit or net cash provided by or used in operating, investing or financing activities and not as alternatives to such GAAP measures. In evaluating Adjusted EBITDA, you should be aware that, in the future, we may incur expenses similar to those eliminated in this presentation. No reconciliation of the estimated range for Adjusted EBITDA or Adjusted EBITDA margin for fiscal 2025 is included herein because we are unable to quantify certain amounts that would be required to be included in net income attributable to Core & Main, Inc., the most directly comparable GAAP measure, without unreasonable efforts due to the high variability and difficulty to predict certain items excluded from Adjusted EBITDA. Consequently, we believe such reconciliation would imply a degree of precision that would be misleading to investors. In particular, the effects of acquisition expenses cannot be reasonably predicted in light of the inherent difficulty in quantifying such items on a forward-looking basis. We expect the variability of these excluded items may have an unpredictable, and potentially significant, impact on our future GAAP financial results. The following table sets forth a reconciliation of net income or net income attributable to Core & Main, Inc. to EBITDA and Adjusted EBITDA for the periods presented: (Amounts in millions) Three Months Ended May 4, 2025 April 28, 2024 Net income attributable to Core & Main, Inc. $ 100 $ 95 Plus: net income attributable to non-controlling interest 5 6 Net income $ 105 $ 101 Depreciation and amortization (1) 47 44 Provision for income taxes 36 33 Interest expense 30 34 EBITDA $ 218 $ 212 Equity-based compensation 5 3 Acquisition expenses (2) 1 2 Adjusted EBITDA $ 224 $ 217 (1) Includes depreciation of certain assets which are reflected in "cost of sales" in our Statement of Operations. (2) Represents expenses associated with acquisition activities, including transaction costs, post-acquisition employee retention bonuses, severance payments, expense recognition of purchase accounting fair value adjustments (excluding amortization). The following table sets forth a calculation of Net Debt for the periods presented: (Amounts in millions) As of May 4, 2025 April 28, 2024 Senior ABL Credit Facility due February 2029 $ 100 $ 241 Senior Term Loan due July 2028 1,245 1,459 Senior Term Loan due February 2031 939 749 Total Debt $ 2,284 $ 2,449 Less: Cash & Cash Equivalents (8 ) (30 ) Net Debt $ 2,276 $ 2,419 View source version on Contacts Investor Relations: Glenn Floyd, 314-995-9108InvestorRelations@
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Earnings To Watch: Core & Main (CNM) Reports Q1 Results Tomorrow
Water and fire protection solutions company Core & Main (NYSE:CNM) will be reporting results tomorrow before the bell. Here's what investors should know. Core & Main beat analysts' revenue expectations by 1.7% last quarter, reporting revenues of $1.70 billion, up 17.9% year on year. It was a slower quarter for the company, with a miss of analysts' EPS estimates and a miss of analysts' adjusted operating income estimates. Is Core & Main a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Core & Main's revenue to grow 6% year on year to $1.85 billion, slowing from the 10.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.54 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Core & Main has missed Wall Street's revenue estimates twice over the last two years. Looking at Core & Main's peers in the industrial distributors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. DistributionNOW delivered year-on-year revenue growth of 6.4%, beating analysts' expectations by 1.9%, and MRC Global reported a revenue decline of 8.4%, in line with consensus estimates. DistributionNOW traded down 9.1% following the results while MRC Global was also down 6.1%. Read our full analysis of DistributionNOW's results here and MRC Global's results here. Investors in the industrial distributors segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. Core & Main is up 12.8% during the same time and is heading into earnings with an average analyst price target of $60.12 (compared to the current share price of $60.10). Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
