Core & Main Inc. Reports Fiscal 2024 Third Quarter Financial Results
Core & Main Inc. (NYSE:CNM), a leading specialty distributor, recently announced its financial results for the third quarter ended October 27, 2024.
Key Financial Metrics:
| Financial Metric | Q3 2024 | Q3 2023 | Y-o-Y Change | Consensus Estimates | Beat/Miss |
|---|---|---|---|---|---|
| Total Revenue | $2.038B | $1.827B | +11.5% | $1.99B | Beat |
| EPS (Diluted) | $0.69 | $0.65 | +6.2% | $0.66 | Beat |
In the third quarter of fiscal year 2024, Core & Main reported a notable increase in revenue, surpassing both the previous year's quarter and the Wall Street consensus estimates. The company's EPS also saw significant growth, indicative of efficient cost management amid increased revenue.
Segment Revenue Performance:
| Segment | Performance Summary |
|---|---|
| Pipes, Valves & Fittings | Increased due to acquisitions. |
| Storm Drainage Products | Growth due to adoption of advanced systems. |
| Fire Protection Products | Decline due to lower volumes and prices. |
| Meter Products | Benefitted from smart meter technology. |
Core & Main's revenue across its primary segments saw varied results. While Pipes, Valves & Fittings and Storm Drainage Products posted growth, Fire Protection Products experienced a decline, primarily due to reduced selling prices and volumes.
Key Developments and Operational Highlights: - Completed five acquisitions: HM Pipe Products, GroGreen Solutions, Green Equipment Company, Eastcom Associates, and ARGCO Northeast. - Executed a share repurchase program, with $100 million spent to retire 2.46 million shares.
Comments from Company Officers: Steve LeClair, chair and CEO, highlighted the strong quarterly performance, emphasizing record sales and Adjusted EBITDA. He attributed success to strategic acquisitions and a disciplined M&A approach. LeClair emphasized the company's focus on organic market share gains and capital allocation aimed at growth and shareholder value creation.
Forward Guidance: Core & Main updated its fiscal 2024 outlook, expecting net sales to range from $7.35 billion to $7.45 billion and Adjusted EBITDA between $915 million and $935 million. This positive guidance reflects stability in end markets and prices.
Stock Price Movement: Following the earnings release, Core & Main's stock experienced a slight decline of 0.54%, reflecting investor reactions to the company's financial performance and forward-looking statements.
Overall, Core & Main's third quarter results reflect robust growth in sales and successful acquisition strategies, positioning the company for further value creation in the coming fiscal year.
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