Water and fire protection solutions company Core & Main (NYSE:CNM) will be announcing earnings results next Tuesday before market hours. Here’s what to expect.
Core & Main missed analysts’ revenue expectations by 1% last quarter, reporting revenues of $2.09 billion, up 6.6% year on year. It was a disappointing quarter for the company, with full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.
Is Core & Main a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Core & Main’s revenue to be flat year on year at $2.06 billion, slowing from the 11.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.71 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Core & Main has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Core & Main’s peers in the industrial distributors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. DNOW delivered year-on-year revenue growth of 4.6%, meeting analysts’ expectations, and Watsco reported a revenue decline of 4.3%, falling short of estimates by 2.6%. DNOW traded down 7.1% following the results while Watsco’s stock price was unchanged.
Read our full analysis of DNOW’s results here and Watsco’s results here.
Investors in the industrial distributors segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Core & Main is down 7.6% during the same time and is heading into earnings with an average analyst price target of $59.75 (compared to the current share price of $48.35).
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