Core & Main, Inc Reports Strong Beat

Core & Main (NYSE:CNM) posted first-quarter earnings that matched expectations and revenue that came in ahead of forecasts, yet the stock slipped over 2% intra-day today as investors reacted to tighter margins and an unchanged full-year outlook.

The company reported adjusted earnings per share of $0.52 for the quarter, aligning with analyst projections. Revenue rose nearly 10% year-over-year to $1.91 billion, topping the $1.85 billion consensus estimate, driven by robust demand across its core markets.

Gross profit climbed to $510 million, up 9% from the prior year, but gross margin edged down to 26.7% from 26.9%. The company attributed the margin contraction to higher average inventory costs, despite ongoing efforts to enhance profitability.

Looking ahead, Core & Main reaffirmed its fiscal 2025 net sales guidance of $7.6 billion to $7.8 billion, implying modest annual growth of 2% to 5%.

Despite healthy top-line growth, investors appeared cautious about margin pressures and a guidance range that suggests tempered optimism in the face of rising costs.

• Core & Main, Inc. (NYSE:CNM) reported an EPS of $0.52, meeting the Zacks Consensus Estimate and indicating profitability growth.
• The company's revenue reached approximately $1.91 billion, surpassing estimates and reflecting robust sales performance.
• CNM's financial metrics, including a P/E ratio of 26.58 and a debt-to-equity ratio of 1.48, highlight its market valuation, operational efficiency, and financial stability.

Core & Main, Inc. (NYSE:CNM) is a leading distributor of water, wastewater, storm drainage, and fire protection products in the United States. The company operates in a competitive market, with key players like Ferguson and HD Supply. CNM's recent financial performance showcases its strong market position and effective strategies.

On June 10, 2025, CNM reported earnings per share (EPS) of $0.52, aligning with the Zacks Consensus Estimate. This marks an improvement from the previous year's EPS of $0.49, indicating growth in profitability. The company's revenue reached approximately $1.91 billion, surpassing the estimated $1.85 billion, reflecting its robust sales performance.

CNM's financial metrics provide insights into its market valuation and operational efficiency. With a price-to-earnings (P/E) ratio of 26.58, the market values CNM's earnings positively. The price-to-sales ratio of 1.46 suggests investors are willing to pay $1.46 for every dollar of sales, indicating confidence in the company's revenue generation.

The enterprise value to sales ratio of 1.80 and the enterprise value to operating cash flow ratio of 21.55 highlight CNM's overall valuation compared to its sales and cash flow. These figures suggest a strong market position and efficient cash flow management. The earnings yield of 3.76% offers a perspective on the return on investment for shareholders.

CNM's debt-to-equity ratio of 1.48 indicates a balanced use of debt in its capital structure, while a current ratio of 2.34 shows its ability to cover short-term liabilities with short-term assets. These metrics reflect CNM's financial stability and strategic financial management, contributing to its impressive performance in Q1 2025.

• RBC Capital upgrades Core & Main, Inc. (NYSE:CNM) to "Outperform," signaling confidence in its future market performance.
• Anticipated Q1 earnings of 54 cents per share on revenue of $1.85 billion, indicating positive year-over-year growth.
• Despite a slight miss in Q4 earnings, CNM's stock demonstrates resilience with a market capitalization of approximately $11.24 billion.

Core & Main, Inc. (NYSE:CNM) is a leading distributor of water, wastewater, storm drainage, and fire protection products in the United States. The company serves municipalities, private water companies, and professional contractors. CNM operates in a competitive market, with key competitors including Ferguson PLC and HD Supply Holdings.

On June 10, 2025, RBC Capital updated its rating for CNM to "Outperform," indicating confidence in the company's future performance. At the time of this announcement, CNM's stock price was $59.33. This rating suggests that RBC Capital expects CNM to perform better than the overall market or its sector peers.

CNM is set to release its first-quarter financial results on June 10, with analysts expecting earnings of 54 cents per share. This is an increase from 49 cents per share in the same period last year. The anticipated revenue is $1.85 billion, up from $1.74 billion a year ago, reflecting positive growth expectations.

Previously, on March 25, CNM reported fourth-quarter earnings of 33 cents per share, which fell short of the consensus estimate of 36 cents. This led to a slight decline in CNM's share price by 0.6%, closing at $59.33. Despite this, the stock has shown resilience, trading between $59.10 and $60.32 today.

CNM's market capitalization is approximately $11.24 billion, indicating its significant presence in the market. The stock has traded a volume of 4,977,844 shares on the NYSE. Over the past year, CNM has reached a high of $60.38 and a low of $37.22, showcasing its volatility and potential for growth.

Core & Main, Inc. (NYSE:CNM) is preparing to release its quarterly earnings on June 10, 2025. Analysts predict an earnings per share (EPS) of $0.52 and project the company's revenue to be around $1.85 billion. This announcement is crucial for investors and stakeholders eager to gauge the company's financial health and strategic direction.

CNM's financial metrics provide a deeper understanding of its market position. With a price-to-earnings (P/E) ratio of 27.6, investors are willing to pay $27.60 for every dollar of earnings. This ratio helps investors assess whether the stock is overvalued or undervalued compared to its earnings.

The company's price-to-sales ratio is 1.52, meaning investors pay $1.52 for every dollar of sales. This ratio is useful for evaluating the company's revenue generation relative to its stock price. Additionally, the enterprise value to sales ratio of 1.85 reflects CNM's total valuation compared to its sales, offering insight into its overall market value.

CNM's enterprise value to operating cash flow ratio stands at 22.22, indicating how many times the operating cash flow can cover the enterprise value. This ratio helps assess the company's ability to generate cash flow relative to its valuation. The earnings yield of 3.62% shows the percentage of each dollar invested that was earned by the company, providing a measure of profitability.

The debt-to-equity ratio of 1.48 highlights the proportion of debt used to finance CNM's assets relative to shareholders' equity. This ratio is important for understanding the company's financial leverage. Lastly, a current ratio of 2.34 indicates CNM's ability to cover short-term liabilities with short-term assets, reflecting its liquidity position.

Core & Main (NYSE:CNM) reported fourth-quarter earnings, which came in below expectations, even as revenue slightly exceeded forecasts and the full-year outlook pointed to continued growth.

The water infrastructure specialist posted earnings per share of $0.33, falling short of analysts’ estimate of $0.36. Quarterly revenue rose 17.9% year-over-year to $1.69 billion, narrowly beating the $1.68 billion consensus. Meanwhile, adjusted EBITDA totaled $179 million, just under the projected $179.5 million.

Despite the earnings miss, Core & Main emphasized strong execution, noting its 15th consecutive year of positive sales growth. Management expects flat to slightly positive demand in 2025, with gradual strength in municipal repair and replacement projects.

Looking ahead, the company is guiding for fiscal 2025 revenue between $7.6 billion and $7.8 billion, above analyst expectations of $7.42 billion. Net sales growth is projected at 2% to 5%, with average daily sales expected to rise 4% to 7%.

Core & Main (NYSE:CNM) reported fourth-quarter earnings, which came in below expectations, even as revenue slightly exceeded forecasts and the full-year outlook pointed to continued growth.

The water infrastructure specialist posted earnings per share of $0.33, falling short of analysts’ estimate of $0.36. Quarterly revenue rose 17.9% year-over-year to $1.69 billion, narrowly beating the $1.68 billion consensus. Meanwhile, adjusted EBITDA totaled $179 million, just under the projected $179.5 million.

Despite the earnings miss, Core & Main emphasized strong execution, noting its 15th consecutive year of positive sales growth. Management expects flat to slightly positive demand in 2025, with gradual strength in municipal repair and replacement projects.

Looking ahead, the company is guiding for fiscal 2025 revenue between $7.6 billion and $7.8 billion, above analyst expectations of $7.42 billion. Net sales growth is projected at 2% to 5%, with average daily sales expected to rise 4% to 7%.

Core & Main, Inc (NYSE:CNM) reported its Q1 results last week, with EPS of $0.31 coming in slightly worse than the Street estimate of $0.32. Revenue of $1.37 billion was in line with expectations. Shares have gained more than 7% since then.

According to Deutsche Bank analysts, pricing grew in low-double-digit percentage, and along with an M&A benefit, more than offset a 5% volume decline against a difficult prior year comp.

Price outperformance again drove stronger gross margins than anticipated, although the company continues to expect 100-150bps of benefit to prove temporary as higher-cost inventory flows through and aligns with current pricing.

With a leveling off of pricing largely complete by now, the analysts do expect to see the gross margin reset begin to flow through most prominently starting in Q2 and into Q3. The analysts raised their price target to $42 from $40 while maintaining their Buy rating.