Overview
Core & Main fiscal Q3 net sales slightly missed analyst expectations
Adjusted EPS for fiscal Q3 beats consensus, increasing 3.5% yr/yr
Company completed acquisition of Canada Waterworks and expanded share repurchase authorization
Outlook
Core & Main reaffirms full-year net sales of $7.6 bln to $7.7 bln
Company expects full-year adjusted EBITDA of $920 mln to $940 mln
Core & Main anticipates operating cash flow of $550 mln to $610 mln
Result Drivers
ACQUISITIONS - Net sales growth primarily driven by acquisitions, including Canada Waterworks
PRODUCT LINE GROWTH - Double-digit growth in fusible high-density polyethylene and geosynthetics products
GROSS MARGIN IMPROVEMENT - Driven by private label initiatives and disciplined purchasing and pricing
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Slight Miss* | $2.06 bln | $2.07 bln (13 Analysts) |
Q3 Adjusted EPS | Beat | $0.89 | $0.76 (10 Analysts) |
Q3 Net Income | $143 mln | ||
Q3 Adjusted EBITDA | Slight Beat* | $274 mln | $272.71 mln (13 Analysts) |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for Core & Main Inc is $61.00, about 20.7% above its December 8 closing price of $50.52
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 24 three months ago
Press Release: ID:nBwbCRFp6a
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)