Fiscal 2024 Second Quarter Results SEPTEMBER 4, 2024 CAUTIONARY STATEMENTS Cautionary Note Regarding Forward-Looking Statements This presentation and accompanying discussion may include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, all statements other than statements of historical or current facts relating to our intentions, beliefs, assumptions or current expectations concerning, among other ...

Core & Main, Inc. (NYSE:CNM) Q2 2024 Earnings Call Transcript September 4, 2024 8:30 AM ET Company Participants Robyn Bradbury - IR Steve LeClair - Chair and CEO Brad Cowles - President Mark Witkowski - CFO Conference Call Participants Kathryn Thompson - Thompson Research Group Dave Manthey - Baird Matthew Bouley - Barclays Nigel Coe - Wolfe Research Joe Ritchie - Goldman Sachs Mike Dahl - RBC Capital Markets Anthony Pettinari - Citi Patrick Baumann - JPMorgan David Ridley-Lane - Bank of America Operator He ...

Core Points - Core & Main reported weaker-than-expected earnings, leading to a 14% drop in share price after missing both top- and bottom-line expectations and cutting full-year guidance [1][3] - The company reported earnings of $0.61 per share on sales of $1.96 billion for the fiscal second quarter, with year-over-year sales growth of 5.5% and gross profit growth of 3.4%, but fell short of Wall Street estimates of $0.74 per share and $2.1 billion in sales [3] - CEO Steve LeClair attributed the growth shortfall to wet weather conditions that delayed projects and lower end-market volumes [3] Revenue Forecast - Core & Main reduced its full-year revenue forecast by $200 million, now expecting revenue in the range of $7.3 billion to $7.4 billion due to weather disruptions and project delays into 2025 [4] Market Outlook - Despite recent declines, Core & Main stock has been a strong performer over the past year, driven by expectations of increased business in the future [5] - The company continues to consolidate, having completed five deals since the last quarter, which is expected to broaden its addressable market [5] - The stock is currently trading at about 19 times earnings, indicating it is not inexpensive, but the long-term market potential remains significant [6]

Core & Main (CNM) came out with quarterly earnings of $0.61 per share, missing the Zacks Consensus Estimate of $0.73 per share. This compares to earnings of $0.66 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -16.44%. A quarter ago, it was expected that this distributor of water and fire protection products would post earnings of $0.51 per share when it actually produced earnings of $0.49, delivering a surprise of -3.92%. O ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 28, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 001-40650 Core & Main, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organ ...

Financial Performance - Net sales for the second quarter of fiscal 2024 increased by 5.5% to $1,964 million compared to $1,861 million in the same quarter of fiscal 2023[2]. - Gross profit for the second quarter increased by 3.4% to $518 million, with a gross profit margin of 26.4%, down 50 basis points from the previous year[2][7]. - Net income for the second quarter decreased by 23.2% to $126 million, and diluted earnings per share decreased by 7.6% to $0.61[2][9]. - Adjusted EBITDA for the second quarter decreased by 4.8% to $257 million, with an Adjusted EBITDA margin of 13.1%, down 140 basis points year-over-year[2][10]. - Operating income decreased to $204 million for the second quarter of fiscal 2024, down from $226 million in the same quarter of the previous year[30]. - Basic earnings per share for the second quarter were $0.62, down from $0.66 in the same period last year[30]. - Adjusted EBITDA for the six months ended July 28, 2024, was $474 million, down from $490 million for the same period in 2023, reflecting a decrease of 3.3%[39]. - Adjusted EBITDA margin for the three months ended July 28, 2024, was calculated at 102.3% of net sales, compared to 103.6% for the same period in 2023[39]. Acquisitions and Business Expansion - The company acquired five new businesses during and after the quarter, enhancing its geographic reach and product offerings[2][3]. - Acquisitions of businesses totaled $596 million during the second quarter, reflecting the company's strategy for market expansion[33]. Debt and Cash Flow - As of July 28, 2024, net debt was $2,439 million, with a Net Debt Leverage ratio of 2.7x, an increase of 1.0x from the previous year[18]. - Long-term debt rose to $2,404 million as of July 28, 2024, compared to $1,863 million at the end of January 2024, indicating increased leverage[31]. - Total Debt increased to $2,452 million as of July 28, 2024, compared to $1,585 million as of July 30, 2023, marking a significant increase of 55%[42]. - Net cash provided by operating activities for the second quarter was $48 million, a decrease of $234 million compared to the same quarter last year[17]. - The company reported a net cash provided by operating activities of $126 million for the second quarter, a decrease from $402 million in the same quarter last year[33]. Shareholder Returns - The company announced a $500 million share repurchase program, marking its first standing share repurchase authorization since becoming public[4]. Expenses - SG&A expenses for the second quarter increased by 12.6% to $268 million, primarily due to acquisitions[8]. - Interest expense for the six months ended July 28, 2024, was $70 million, up from $39 million for the same period in 2023, reflecting an increase of 79.5%[39]. - Equity-based compensation expenses for the three months ended July 28, 2024, were $4 million, compared to $3 million for the same period in 2023, showing a 33.3% increase[39]. - The company reported depreciation and amortization expenses of $167 million for the twelve months ended July 28, 2024, compared to $146 million for the same period in 2023[40]. Outlook - For fiscal 2024, the company revised its net sales outlook to a range of $7.3 to $7.4 billion and Adjusted EBITDA to a range of $900 to $930 million due to weather disruptions and lower end-market volumes[20]. - Core & Main expects variability in acquisition expenses to impact future GAAP financial results, indicating potential unpredictability in earnings[38].

Core & Main, Inc. (CNM) is scheduled to release its second-quarter fiscal 2024 results on Sept. 4, before market open. CNM outpaced the Zacks Consensus Estimate in one of the four quarters, met in one, and missed in two instances, delivering a negative earnings surprise of 1.7%, on average. Q2 Expectations for Core & Main The Zacks Consensus Estimate for CNM's revenues is pegged at $7.5 billion, indicating an 11.4% increase from the year-ago quarter's actual.We anticipate robust end-market volumes and an ea ...

Company Performance - Core & Main (CNM) closed at $53.71, reflecting a +1.59% change from the previous day, outperforming the S&P 500's loss of 0.32% [1] - Over the past month, CNM shares have decreased by 1.23%, underperforming the Business Services sector's gain of 0.64% and the S&P 500's gain of 1.52% [1] Upcoming Earnings - The upcoming earnings report for Core & Main is scheduled for September 4, 2024, with projected earnings per share (EPS) of $0.73, indicating a 10.61% increase from the same quarter last year [2] - Revenue is expected to reach $2.03 billion, representing a 9.04% increase from the prior-year quarter [2] Full Year Estimates - For the full year, analysts expect earnings of $2.32 per share and revenue of $7.47 billion, reflecting changes of +7.91% and +11.42% respectively from the previous year [3] Analyst Estimates - Recent changes to analyst estimates for Core & Main are important as they indicate shifts in near-term business trends, with upward revisions suggesting positive sentiment towards the company's operations [4] Zacks Rank and Valuation - Core & Main currently holds a Zacks Rank of 3 (Hold), with no changes in the Zacks Consensus EPS estimate over the past month [6] - The company has a Forward P/E ratio of 22.76, which is a discount compared to the industry's average Forward P/E of 30.35 [7] PEG Ratio - Core & Main has a PEG ratio of 2, which is lower than the Waste Removal Services industry's average PEG ratio of 2.67 [8] Industry Ranking - The Waste Removal Services industry, part of the Business Services sector, has a Zacks Industry Rank of 102, placing it in the top 41% of over 250 industries [9]

In the latest trading session, Core & Main (CNM) closed at $50.55, marking a -0.69% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.2%. On the other hand, the Dow registered a loss of 0.15%, and the technology-centric Nasdaq decreased by 0.34%. Shares of the distributor of water and fire protection products witnessed a loss of 2.32% over the previous month, trailing the performance of the Business Services sector with its gain of 0.88% and the S&P 500's gain of 1 ...

Core & Main (CNM) closed the latest trading day at $47.53, indicating a -0.65% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 1.04% for the day. Meanwhile, the Dow experienced a rise of 0.76%, and the technology-dominated Nasdaq saw an increase of 1.03%. Prior to today's trading, shares of the distributor of water and fire protection products had lost 3.8% over the past month. This has was narrower than the Business Services sector's loss of 5.54% and ...