In the latest market close, Core & Main (CNM) reached $46.09, with a -1.35% movement compared to the previous day. This move lagged the S&P 500's daily loss of 0.18%. Meanwhile, the Dow experienced a drop of 0.8%, and the technology-dominated Nasdaq saw an increase of 0.27%.Shares of the distributor of water and fire protection products have appreciated by 7.63% over the course of the past month, outperforming the Business Services sector's gain of 4.62% and the S&P 500's gain of 4.46%.The investment commun ...

Group 1: Stock Performance - Core & Main (CNM) closed at $43.45, marking a +1.73% move from the prior day, outperforming the S&P 500's daily gain of 0.71% [1] - Over the past month, shares of Core & Main gained 12.04%, surpassing the Business Services sector's gain of 5.54% and the S&P 500's gain of 6.41% [1] Group 2: Financial Forecast - Core & Main is forecasted to report an EPS of $0.65, showing no change from the same quarter of the previous year, with a revenue estimate of $2 billion, indicating a 9.51% increase year-over-year [2] - For the entire fiscal year, earnings are projected at $2.10 per share and revenue at $7.32 billion, representing changes of -2.33% and +9.21% from the prior year, respectively [3] Group 3: Analyst Estimates and Rankings - Recent changes to analyst estimates for Core & Main reflect near-term business trends, with positive revisions indicating analysts' confidence in the company's performance [3] - Core & Main currently holds a Zacks Rank of 5 (Strong Sell), with the Zacks Consensus EPS estimate remaining stagnant over the past month [5] Group 4: Valuation Metrics - Core & Main is trading at a Forward P/E ratio of 20.37, which is below the industry average of 27.17, indicating a discount compared to its peers [6] - The company has a PEG ratio of 2.78, which is comparable to the Waste Removal Services industry average of 2.83 [7] Group 5: Industry Context - The Waste Removal Services industry, part of the Business Services sector, currently holds a Zacks Industry Rank of 201, placing it in the bottom 21% of all industries [7] - The strength of individual industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Company Overview - Core & Main is a US-based distributor of water, wastewater, storm drainage, and fire protection products, operating approximately 335 branches across 48 states [2] - Revenue is generated from direct product sales and integrated services, with a breakdown by product type [2] - Total revenue for 2023 was $6,702 million, showing an increase from $6,651 million in 2022 [3] Recent Performance - Weather disruptions in Q2 2024 resulted in a direct impact of $50 million in lost sales, approximately 3% of total revenue for the quarter [5] - Heavy rainfall and flooding caused delays in construction projects, particularly in underground utility and waterworks operations [6] - A slowdown in commercial project starts is noted, with developers delaying projects due to macroeconomic uncertainties [6] - Steel pipe prices have declined to historic lows, contributing to a 50 basis point drop in total gross margins and a 4.8% decline in adjusted EBITDA [6] - SG&A expenses increased by 12.6% year-over-year, primarily due to costs from recent acquisitions, which were the main driver behind a 5.5% increase in net sales [6] - Interest expenses rose significantly from $22 million in Q2 2023 to $36 million in Q2 2024 due to a $750 million term loan and increased borrowings [6] - Inventory costs increased, leading to a slight decline in gross margins from 26.9% in Q2 2023 to 26.4% in Q2 2024 [6] - Meter product sales surged by 48%, driven by the adoption of smart metering technology [6] Outlook - The share price has declined by 37% since May, with over 15% of this decline occurring during the Q2 earnings release [8] - Despite a solid share buyback program of $500 million, the lack of insider buying activity raises concerns about further share price declines [9] - The company has a manageable debt level, with quick and current ratios above one and a debt to assets ratio of 0.43 [11] - The lack of insider buying following a significant share price drop suggests potential further declines, with a possible support level at $32 [9][11] Conclusion - Core & Main is experiencing headwinds from weather disruptions, inflationary pressures, and declining steel pipe prices, impacting performance [12] - The slowdown in commercial projects due to macroeconomic uncertainties adds further pressure [12] - Despite positive signs from acquisition-driven growth and a solid buyback program, the lack of insider buying activity leads to a Hold rating [12]

Analysts cut their price targets on the company in the wake of its disappointing quarter. It wasn't shaping up to be a good stretch of days for Core & Main (CNM 0.13%) shareholders. In the abbreviated trading week, the specialized industrial company's stock tumbled by almost 21%, according to data compiled by S&P Global Market Intelligence. The major news from the company during the period wasn't very encouraging, after all. Nor was the resulting clutch of analyst price target reductions. A quarter to forge ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Let's take a look at what these Wall Street heavyweights have to say about Core & Main (CNM) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Core & Main currently has an average brokerage recommendati ...

Key Takeaways Infrastructure company Core & Main missed profit and sales estimates as bad weather and macroeconomic conditions had an impact on its results. The supplier of pipes also cut its full-year guidance. Core & Main's stock dropped Wednesday, turning negative for the year so far. Shares of Core & Main (CNM), which supplies pipes for water, wastewater and other uses, posted worse-than-expected results and cut its outlook after it said bad weather and economic conditions affected sales. The news dragg ...

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 ...