Latest news with #CNM
Yahoo
12-06-2025
- Business
- Yahoo
Core & Main Flashes Bullish Outlier Signals
CNM focuses on water, wastewater, storm drainage and fire protection products, along with related services. Its customers include municipalities, private water companies, and contractors. The company is a big player in improving and maintaining the U.S. water infrastructure. Financially, CNM's first-quarter fiscal 2025 report showed a record $1.9 billion in net sales. The sales growth was driven by volume, suggesting an overall uptick, and adjusted EBITDA rose 3%, to $224 million. CNM excelled in municipal construction, which it attributed to funding from the Infrastructure Investment and Jobs Act, as well as meters and treatment plant solutions. No wonder CNM shares are up 14% this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock. Institutional volumes reveal plenty. In the last year, CNM has enjoyed strong investor demand, which we believe to be institutional support. Each green bar signals unusually large volumes in CNM shares. They reflect our proprietary inflow signal, pushing the stock higher: Plenty of industrials names are under accumulation right now. But there's a powerful fundamental story happening with Core & Main. Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, CNM has had strong sales and earnings growth: 3-year sales growth rate (+14.9%) 3-year EPS growth rate (+39.1%) Source: FactSet Also, EPS is estimated to ramp higher this year by +15.1%. Now it makes sense why the stock has been generating Big Money interest. CNM has a track record of strong financial performance. Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term. Core & Main has been a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis. It just made the rare Outlier 20 report for the first time in over a year. But it's been an outlier multiple times in the last three years. The blue bars below show when CNM was a top pick…boosted by Big Money: Tracking unusual volumes reveals the power of money flows. This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward. The CNM action isn't new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio. Disclosure: the author holds no position in CNM at the time of publication. If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level and follow our free weekly MoneyFlows insights. This article was originally posted on FX Empire Portugal: Persistent Political Fragmentation to Test Growth and Fiscal Prospects Sezzle Shares Sizzle After Big Money Inflows Big Money Buys LPL Financial Shares Strong Inflows Make Catalyst Stock an Outlier Rare Outflow Signals Hit Eli Lilly Shares US Foods Seeing Inflows
Yahoo
11-06-2025
- Business
- Yahoo
CNM Q1 Earnings Call: Market Share Gains and Steady Infrastructure Demand Shape Outlook
Water and fire protection solutions company Core & Main (NYSE:CNM) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 9.8% year on year to $1.91 billion. On the other hand, the company's full-year revenue guidance of $7.7 billion at the midpoint came in 0.6% below analysts' estimates. Is now the time to buy CNM? Find out in our full research report (it's free). Revenue: $1.91 billion vs analyst estimates of $1.85 billion (9.8% year-on-year growth, 3.5% beat) Adjusted EBITDA: $224 million vs analyst estimates of $225 million (11.7% margin, in line) The company reconfirmed its revenue guidance for the full year of $7.7 billion at the midpoint EBITDA guidance for the full year is $975 million at the midpoint, below analyst estimates of $982.9 million Operating Margin: 8.9%, in line with the same quarter last year Organic Revenue rose 4.8% year on year (2.7% in the same quarter last year) Market Capitalization: $11.02 billion Core & Main's first quarter results were shaped by steady municipal infrastructure demand, continued share gains, and resilient activity in nonresidential construction. Management pointed to above-market growth in its smart meters and storm drainage products, as well as the benefits of recent product and geographic expansion initiatives. CEO Mark Witkowski emphasized the importance of local relationships and a diversified product mix, stating, 'We drove 10% growth in meters and growth well into the double digits in our treatment plant and fusible high-density polyethylene offerings.' While residential lot development started the year with healthy activity, management acknowledged the segment is showing early signs of softening due to affordability pressures and cautious developer spending. Looking forward, Core & Main's guidance reflects a stable but uncertain environment, with management citing tariff risks, inflation, and interest rates as key variables for the remainder of the year. CFO Robyn Bradbury noted, 'We have good visibility into demand through the next quarter and expect to finish the first half strong supported by healthy project activity and backlogs,' but flagged less clarity for the back half of the year. Management expects flat to slightly positive pricing trends and is focused on passing through supplier cost increases, while also pursuing margin improvement through private label expansion and sourcing initiatives. Investments in greenfield branches and bolt-on acquisitions remain central to the company's growth strategy. Management attributed first quarter performance to municipal infrastructure funding, strong nonresidential demand, and share gains in targeted product categories. Expansion initiatives and disciplined pricing also played a significant role. Municipal project momentum: Ongoing funding from the Infrastructure Investment and Jobs Act (IIJA) supported growth in water and wastewater projects, especially in treatment plants, transmission line replacements, and stormwater management. Management cited a growing pipeline of shovel-ready municipal projects that contributed to steady demand in Q1. Nonresidential segment stability: While commercial buildings and manufacturing remained soft, Core & Main saw solid sales into data center construction, institutional buildings, multifamily housing, and road and bridge projects. The company's diversified exposure provided a buffer against weaker categories, and bidding activity across nonresidential segments was described as healthy. Smart meter and storm drainage growth: The company achieved 10% growth in smart meter sales (on top of strong prior-year results) and 17% growth in storm drainage, driven by both organic initiatives and M&A. Management attributed storm drainage strength in part to road and bridge projects and changes in product acceptance at the local level. Pricing and margin discipline: Sequential improvement in gross margins was realized through disciplined pricing and ongoing efforts in private label and sourcing optimization. While tariffs have had minimal direct impact so far, management is closely monitoring supplier cost increases and has taken steps to pass on higher costs where necessary. Local expansion and M&A: Core & Main continues to expand via greenfield branches and bolt-on acquisitions, having opened 20 greenfields since 2017 and completed over 40 acquisitions. The company emphasized the importance of local expertise in driving organic growth and indicated that its acquisition pipeline remains active. Core & Main's guidance is shaped by expectations of flat end markets, margin expansion strategies, and ongoing uncertainty in residential and private construction. Infrastructure funding tailwinds: Management expects continued support from federal and state funding for municipal water and wastewater projects, which should provide stability even if other construction segments soften. The company anticipates municipal demand to remain steady throughout the year. Margin improvement initiatives: The company is focused on expanding gross margins through private label growth, sourcing optimization, and disciplined pricing. Management stated that SG&A productivity and cost-out activities are expected to further support EBITDA margin expansion, despite acquisition-related expense pressures. Residential and macroeconomic risks: Core & Main anticipates a neutral to slightly down outlook for residential lot development, citing affordability pressures and smaller project footprints. Uncertainty around tariffs, interest rates, and inflation could dampen private construction activity and impact demand in the second half of the year. In the coming quarters, the StockStory team will be watching (1) continued flow of IIJA funding into municipal projects and the impact on Core & Main's backlog, (2) execution of margin expansion initiatives, particularly in private label and sourcing, and (3) signals of stabilization or further softening in residential and private nonresidential construction. The pace of greenfield openings and progress on acquisition integration will also be closely tracked. Core & Main currently trades at a forward P/E ratio of 23.4×. At this valuation, is it a buy or sell post earnings? The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
11-06-2025
- Business
- Yahoo
Core & Main Inc (CNM) Q1 2025 Earnings Call Highlights: Record Sales and Strategic Growth ...
Net Sales: $1.9 billion, a 10% increase, marking a first-quarter record. Adjusted EBITDA: $224 million, a 3% increase, with margins at 11.7%. Gross Margin: 26.7%, a slight sequential improvement from the previous quarter. SG&A Expenses: Increased 14% to $293 million, primarily due to acquisitions and inflation. Interest Expense: $30 million, down from $34 million in the prior year. Net Debt: Nearly $2.3 billion with a net leverage of 2.4 times. Operating Cash Flow: $77 million generated in the first quarter. Share Repurchases: 837,000 shares repurchased for $39 million at an average price of $46.64 per share. Diluted EPS: Increased approximately 6% to $0.52. Full-Year Guidance: Net sales of $7.6 billion to $7.8 billion and adjusted EBITDA of $950 million to $1 billion. Warning! GuruFocus has detected 8 Warning Signs with PLAY. Release Date: June 10, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Core & Main Inc (NYSE:CNM) achieved record first-quarter net sales of $1.9 billion and adjusted EBITDA of $224 million, marking all-time highs for the first quarter. The company reported a 10% growth in net sales, with mid-single-digit organic sales growth and additional growth from acquisitions. Core & Main Inc (NYSE:CNM) saw strong performance in municipal construction activity, supported by funding from the Infrastructure Investment and Jobs Act. The company experienced robust growth in specific product categories, including a 10% increase in meters and double-digit growth in treatment plant and fusible high-density polyethylene offerings. Core & Main Inc (NYSE:CNM) maintained strong gross margins through disciplined pricing and effective execution of private label and sourcing initiatives. The residential construction market showed signs of softening due to economic conditions and affordability pressures, with developers reducing project footprints. Activity in commercial buildings, manufacturing, and warehousing remained softer compared to other sectors. The company faced a year-over-year decline in gross margins due to higher average inventory costs, despite sequential improvement. Tariff-related cost increases from suppliers are beginning to impact the company, although the direct impact on Core & Main Inc (NYSE:CNM)'s supply chain has been minimal so far. Uncertainty surrounding tariffs, inflation, and interest rates could impact customer sentiment and demand in the latter half of the year. Q: Can you provide more details on the SG&A productivity improvements and expectations for the year? A: Robyn Bradbury, CFO, explained that SG&A productivity improved by 4% excluding acquisitions and equity compensation. They expect further organic improvement in SG&A rates year-over-year as they continue to work on M&A synergies, which typically take 12 to 18 months to realize. They are also offsetting inflation impacts and feel positive about their progress. Q: How are you viewing the top-line guidance for the year, considering the share gains and inflation outlook? A: Robyn Bradbury noted that they expect the market to be roughly flat for the full year, with stronger performance in the first half and potential softness in the second half due to tariffs, interest rates, and affordability concerns. Pricing is expected to be flat or slightly positive for the year, with good visibility into demand for the next quarter. Q: Can you discuss the pricing situation with commodities versus finished goods and expectations for the year? A: Robyn Bradbury mentioned that pricing improved sequentially, with steel prices stabilizing and PVC remaining stable. They expect pricing to be flat to slightly up for the year, with some inflation in other product categories. The expectation is for pricing to be neutral or better for FY25. Q: What are your expectations for the residential construction market, given recent trends? A: Mark Witkowski, CEO, stated that while they weren't expecting a robust residential environment in 2025, they were pleased with the activity in the first quarter. However, they are seeing some signs of softening, with developers scaling down projects. Residential construction accounts for about 20% of their business, and they are monitoring the situation closely. Q: Can you elaborate on the growth in the meter segment and expectations for the future? A: Mark Witkowski highlighted that the meter segment grew by 10% in the quarter, building on a 30% growth in the prior year. They continue to win significant meter contracts, driven mostly by volume gains. They expect continued growth in this segment, supported by investments in technical resources and the adoption of smart meter technology. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-06-2025
- Business
- Yahoo
Core & Main (NYSE:CNM) Beats Q1 Sales Targets
Water and fire protection solutions company Core & Main (NYSE:CNM) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 9.8% year on year to $1.91 billion. On the other hand, the company's full-year revenue guidance of $7.7 billion at the midpoint came in 0.6% below analysts' estimates. Its GAAP profit of $0.52 per share was in line with analysts' consensus estimates. Is now the time to buy Core & Main? Find out in our full research report. Revenue: $1.91 billion vs analyst estimates of $1.85 billion (9.8% year-on-year growth, 3.5% beat) EPS (GAAP): $0.52 vs analyst estimates of $0.51 (in line) Adjusted EBITDA: $224 million vs analyst estimates of $225 million (11.7% margin, in line) The company reconfirmed its revenue guidance for the full year of $7.7 billion at the midpoint EBITDA guidance for the full year is $975 million at the midpoint, below analyst estimates of $982.9 million Operating Margin: 8.9%, in line with the same quarter last year Free Cash Flow Margin: 3.3%, similar to the same quarter last year Market Capitalization: $11.24 billion 'We are proud to report another quarter of record performance that showcases the resilience of our end markets and the strength of our business model,' said Mark Witkowski, CEO of Core & Main. Formerly a division of industrial distributor HD Supply, Core & Main (NYSE:CNM) is a provider of water, wastewater, and fire protection products and services. A company's long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Luckily, Core & Main's sales grew at an incredible 17.1% compounded annual growth rate over the last five years. Its growth beat the average industrials company and shows its offerings resonate with customers, a helpful starting point for our analysis. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Core & Main's recent performance shows its demand has slowed significantly as its annualized revenue growth of 7.2% over the last two years was well below its five-year trend. This quarter, Core & Main reported year-on-year revenue growth of 9.8%, and its $1.91 billion of revenue exceeded Wall Street's estimates by 3.5%. Looking ahead, sell-side analysts expect revenue to grow 2.8% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and implies its products and services will face some demand challenges. At least the company is tracking well in other measures of financial health. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Core & Main has done a decent job managing its cost base over the last five years. The company has produced an average operating margin of 9.8%, higher than the broader industrials sector. Looking at the trend in its profitability, Core & Main's operating margin rose by 3.8 percentage points over the last five years, as its sales growth gave it operating leverage. In Q1, Core & Main generated an operating margin profit margin of 8.9%, in line with the same quarter last year. This indicates the company's cost structure has recently been stable. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Core & Main's EPS grew at an astounding 72.9% compounded annual growth rate over the last five years, higher than its 17.1% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Diving into Core & Main's quality of earnings can give us a better understanding of its performance. As we mentioned earlier, Core & Main's operating margin was flat this quarter but expanded by 3.8 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; taxes and interest expenses can also affect EPS but don't tell us as much about a company's fundamentals. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For Core & Main, its two-year annual EPS growth of 18.4% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future. In Q1, Core & Main reported EPS at $0.52, up from $0.47 in the same quarter last year. This print beat analysts' estimates by 1.3%. Over the next 12 months, Wall Street expects Core & Main's full-year EPS of $2.09 to grow 18.2%. We were impressed by how significantly Core & Main blew past analysts' revenue expectations this quarter. On the other hand, its full-year revenue and EBITDA guidance slightly missed Wall Street's estimates. Zooming out, we think this was a mixed quarter. The stock remained flat at $59 immediately after reporting. Is Core & Main an attractive investment opportunity right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-06-2025
- Business
- Yahoo
Core & Main (CNM) Matches Q1 Earnings Estimates
Core & Main (CNM) came out with quarterly earnings of $0.52 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.49 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this distributor of water and fire protection products would post earnings of $0.36 per share when it actually produced earnings of $0.33, delivering a surprise of -8.33%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Core & Main , which belongs to the Zacks Manufacturing - Tools & Related Products industry, posted revenues of $1.91 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 4.29%. This compares to year-ago revenues of $1.74 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Core & Main shares have added about 16.5% since the beginning of the year versus the S&P 500's gain of 2.1%. While Core & Main has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Core & Main: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.75 on $2.11 billion in revenues for the coming quarter and $2.43 on $7.71 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - Tools & Related Products is currently in the bottom 11% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Apogee Enterprises (APOG), another stock in the broader Zacks Industrial Products sector, has yet to report results for the quarter ended May 2025. This glass products company is expected to post quarterly earnings of $0.50 per share in its upcoming report, which represents a year-over-year change of -65.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Apogee Enterprises' revenues are expected to be $323.7 million, down 2.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Core & Main, Inc. (CNM) : Free Stock Analysis Report Apogee Enterprises, Inc. (APOG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
