Financial Performance - Net sales for the three months ended October 27, 2024, were $2,038 million, an increase from $1,827 million in the same period last year, representing a growth of 11.5%[17] - Gross profit for the nine months ended October 27, 2024, was $1,529 million, compared to $1,434 million for the same period last year, reflecting a year-over-year increase of 6.6%[17] - Operating income for the three months ended October 27, 2024, was $223 million, slightly up from $217 million in the prior year, indicating a growth of 2.8%[17] - Net income attributable to Core & Main, Inc. for the three months ended October 27, 2024, was $133 million, compared to $112 million for the same period last year, marking a 18.8% increase[17] - The total comprehensive income attributable to Core & Main, Inc. for the three months ended October 27, 2024, was $124 million, up from $109 million in the prior year, indicating a growth of 13.8%[19] - Net income for the period ending October 27, 2024, is reported at $140 million, reflecting an increase from previous periods[22] - Net income for the three months ended October 29, 2023, was $156 million, with a total of $368 million for the nine months ended October 27, 2024[58] - Net income available to Class A common stock for the nine months ended October 27, 2024, was $347 million, with a net income per share of $1.81[82] Assets and Liabilities - Total assets as of October 27, 2024, were $6,215 million, up from $5,069 million as of January 28, 2024, representing a growth of 22.6%[14] - Total liabilities increased to $4,465 million as of October 27, 2024, from $3,545 million as of January 28, 2024, reflecting a rise of 25.9%[14] - The company’s long-term debt increased to $2,384 million as of October 27, 2024, from $1,863 million as of January 28, 2024, reflecting a rise of 27.8%[14] - As of October 27, 2024, total stockholders' equity stands at $1,750 million, with common shares totaling 190,189,434[22] - The carrying amount of goodwill as of October 27, 2024, was $1.884 billion, an increase from $1.561 billion as of January 28, 2024[60] - The company's intangible assets included customer relationships valued at $1.768 billion as of October 27, 2024, with accumulated amortization of $829 million[61] Cash Flow and Capital Management - Cash and cash equivalents stood at $10 million as of October 27, 2024, compared to $1 million as of January 28, 2024, showing a significant increase[14] - Cash flows from operating activities for the nine months ended October 29, 2023, provided $775 million, a decrease from $386 million in the current period[28] - The company repurchased and retired equity interests amounting to $100 million, reflecting a strategic move to manage capital structure[22] - The company repurchased 2,890,483 shares of Class A common stock for a total of $121 million during the nine months ended October 27, 2024[32] - The company’s total consideration paid for repurchase transactions during fiscal 2023 amounted to $1,078 million[37] Acquisitions and Growth - The company completed acquisitions during the nine months ended October 27, 2024, with an aggregate transaction value of $748 million, compared to $161 million for the same period in 2023[47] - Total assets acquired in Fiscal 2024 amounted to $876 million, significantly higher than $199 million in Fiscal 2023[53] - Net assets acquired in Fiscal 2024 were $753 million, compared to $159 million in Fiscal 2023[53] - The total consideration for acquisitions in Fiscal 2024, net of cash, was $722 million, up from $151 million in Fiscal 2023[53] - Goodwill from Fiscal 2024 acquisitions was $322 million, while goodwill from Fiscal 2023 acquisitions was $17 million[60] Revenue Breakdown - The company reported revenue from pipes, valves, and fittings products of $1,386 million for the three months ended October 27, 2024, up from $1,222 million in the same period of 2023, indicating a growth of 13.4%[45] - The company’s revenue from storm drainage products increased to $327 million for the three months ended October 27, 2024, compared to $290 million in the same period of 2023, reflecting a growth of 12.8%[45] - The company’s revenue from fire protection products decreased to $145 million for the three months ended October 27, 2024, down from $170 million in the same period of 2023, a decline of 14.7%[45] - The company’s revenue from meter products increased to $180 million for the three months ended October 27, 2024, compared to $145 million in the same period of 2023, representing a growth of 24.1%[45] Debt and Interest Rates - The company's total debt as of October 27, 2024, was $2.430 billion, reflecting various long-term debt obligations[63] - Core & Main LP amended the $1,500 million 2028 Senior Term Loan, reducing the effective applicable margin from 2.60% to 2.00%[64] - The weighted average interest rate for the 2028 Senior Term Loan was 6.86% as of October 27, 2024, with a fair value of $1,449 million[64] - An additional $750 million 2031 Senior Term Loan was entered into, maturing on February 9, 2031, with a weighted average interest rate of 7.11%[64] - Each one percentage point change in interest rates would result in an approximately $22 million change in annual interest expense under the Senior Term Loan Credit Facility[161] Tax and Regulatory Matters - Core & Main LP's effective tax rate increased to 25.1% for the three months ended October 27, 2024, compared to 19.8% for the same period in 2023[71] - The company recorded payables under Tax Receivable Agreements of $721 million as of October 27, 2024, with expected payments of $19 million in the next 12 months[72] Operational Highlights - The company has approximately 350 branches across 49 states, providing specialized distribution services[30] - The Company’s largest customer accounted for less than 1% of net sales, indicating a diverse customer base[162] - The company aims to recover increases in product costs by passing them on to customers, which may affect gross profit margins[164]

Financial Performance - Net sales for Q3 2024 increased by 11.5% to $2,038 million compared to $1,827 million in Q3 2023[3] - Gross profit for Q3 2024 rose by 9.9% to $543 million, with a gross profit margin of 26.6%, up 20 basis points from Q2 2024[3] - Net income for Q3 2024 decreased by 11.4% to $140 million, primarily due to increased interest and income tax expenses[12] - Adjusted EBITDA for Q3 2024 increased by 6.5% to $277 million, with an Adjusted EBITDA margin of 13.6%[3] - Operating income for the third quarter was $223 million, compared to $217 million in the prior year, indicating stable operational performance[40] - Net income attributable to Core & Main, Inc. was $133 million, an increase from $112 million year-over-year[40] - Basic earnings per share (EPS) for the third quarter was $0.69, compared to $0.65 in the same quarter last year[40] - Core & Main reported a net income of $443 million for the twelve months ended October 27, 2024, compared to $539 million for the previous twelve months[53] Assets and Liabilities - Total current assets increased to $2,381 million from $1,773 million, driven by higher receivables and inventories[43] - Total assets as of October 27, 2024, were $6,215 million, up from $5,069 million at the end of the previous fiscal year[43] - Long-term debt increased to $2,384 million from $1,863 million, reflecting strategic financing activities[43] - Cash and cash equivalents at the end of the period were $10 million, up from $1 million at the beginning of the period[46] - Total Debt as of October 27, 2024, was $2.43 billion, up from $1.47 billion as of October 29, 2023[57] Cash Flow - Net cash provided by operating activities for Q3 2024 was $260 million, down from $373 million in Q3 2023 due to typical working capital investments[23] - The company reported a net cash provided by operating activities of $386 million for the third quarter[46] - Operating Cash Flow Conversion for the period was not specified, but it is a key metric used to assess operational efficiency[49] Expenses - SG&A expenses for Q3 2024 increased by 14.2% to $274 million, attributed to acquisitions and inflation[10] - The company incurred $10 million in acquisition expenses during the three months ended October 27, 2024[53] - Core & Main's interest expense for the three months ended October 27, 2024, was $36 million, compared to $20 million for the same period in 2023, reflecting an 80% increase[53] Future Outlook - For the full year 2024, the company expects net sales to range from $7,350 million to $7,450 million and Adjusted EBITDA to range from $915 million to $935 million[26] - The company is optimistic about its growth strategy and ability to create value for shareholders through its scale and strong balance sheet[26] - The company expects variability in excluded items from Adjusted EBITDA to potentially impact future GAAP financial results significantly[52] Acquisitions - The company completed five acquisitions during and after the quarter to enhance its market presence and product offerings[3]

Core & Main, Inc. CNM will release earnings results for the third quarter, before the opening bell on Tuesday, Dec. 3.Analysts expect Core & Main to report quarterly earnings at 66 cents per share. That's up from 52 cents per share a year ago. The Saint Louis, Missouri-based company projects to report quarterly revenue of $1.99 billion, compared to $1.83 billion a year earlier, according to data from Benzinga Pro.On Nov. 7, Core & Main said it has closed its previously announced acquisition of substantially ...

The latest trading session saw Core & Main (CNM) ending at $42.73, denoting a -1.95% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.1%. Elsewhere, the Dow gained 0.69%, while the tech-heavy Nasdaq added 0.06%.Heading into today, shares of the distributor of water and fire protection products had lost 1.07% over the past month, lagging the Industrial Products sector's gain of 4.85% and the S&P 500's gain of 4.37% in that time.Analysts and investors alik ...

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 ...