Why Core & Main Stock Is Down Big Today

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]