Core & Main (NYSE:CNM) Announces Earnings Results, Beats Estimates By $0.08 EPS

Key Points

• Core & Main reported earnings of $0.87 EPS for the quarter, exceeding analysts' expectations of $0.78 by $0.09.
• The company demonstrated a solid financial performance with a net margin of 5.47% and a return on equity of 23.55%.
• Insider trading activity included significant sales, with CEO Mark R. Witkowski selling 100,000 shares for approximately $6.4 million.

Core & Main (NYSE:CNM - Get Free Report) posted its earnings results on Tuesday. The company reported $0.87 EPS for the quarter, topping the consensus estimate of $0.79 by $0.08, Zacks reports. Core & Main had a net margin of 5.57% and a return on equity of 25.44%. The firm had revenue of $2.09 billion for the quarter, compared to analysts' expectations of $2.12 billion. During the same quarter last year, the firm earned $0.61 EPS. The company's quarterly revenue was up 6.6% compared to the same quarter last year. Core & Main updated its FY 2025 guidance to EPS.

Core & Main Stock Performance

Shares of CNM stock traded down $0.69 during trading hours on Friday, hitting $48.76. 3,652,711 shares of the company were exchanged, compared to its average volume of 2,968,833. The firm has a fifty day simple moving average of $62.85 and a 200 day simple moving average of $56.05. The company has a current ratio of 2.25, a quick ratio of 1.10 and a debt-to-equity ratio of 1.14. Core & Main has a 52-week low of $39.86 and a 52-week high of $67.18. The stock has a market capitalization of $9.61 billion, a price-to-earnings ratio of 21.77, a P/E/G ratio of 1.88 and a beta of 1.04.

Wall Street Analyst Weigh In

Several research firms have commented on CNM. Royal Bank Of Canada dropped their target price on shares of Core & Main from $67.00 to $62.00 and set an "outperform" rating on the stock in a research report on Wednesday. JPMorgan Chase & Co. dropped their target price on shares of Core & Main from $64.00 to $54.00 and set an "overweight" rating on the stock in a research report on Wednesday. Barclays dropped their target price on shares of Core & Main from $69.00 to $65.00 and set an "overweight" rating on the stock in a research report on Wednesday. Citigroup dropped their target price on shares of Core & Main from $62.00 to $54.00 and set a "neutral" rating on the stock in a research report on Wednesday. Finally, Truist Financial dropped their target price on shares of Core & Main from $56.00 to $50.00 and set a "hold" rating on the stock in a research report on Thursday. Six analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $59.60.

Insider Activity at Core & Main

In other news, insider Stephen O. Leclair sold 44,972 shares of the firm's stock in a transaction that occurred on Monday, July 7th. The shares were sold at an average price of $61.91, for a total transaction of $2,784,216.52. Following the completion of the sale, the insider owned 70,736 shares in the company, valued at $4,379,265.76. This trade represents a 38.87% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Orvin T. Kimbrough sold 23,962 shares of the firm's stock in a transaction that occurred on Friday, July 18th. The stock was sold at an average price of $61.77, for a total transaction of $1,480,132.74. Following the sale, the director owned 13,958 shares of the company's stock, valued at approximately $862,185.66. The trade was a 63.19% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 422,956 shares of company stock worth $26,343,241 over the last 90 days. Corporate insiders own 3.53% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. HRT Financial LP purchased a new position in Core & Main in the 2nd quarter valued at approximately $2,518,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Core & Main by 8.4% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 38,551 shares of the company's stock valued at $2,327,000 after buying an additional 2,975 shares in the last quarter. Skye Global Management LP purchased a new position in Core & Main in the 2nd quarter valued at approximately $2,293,000. Quantinno Capital Management LP grew its stake in Core & Main by 24.2% in the 2nd quarter. Quantinno Capital Management LP now owns 33,047 shares of the company's stock valued at $1,994,000 after buying an additional 6,438 shares in the last quarter. Finally, Tidal Investments LLC grew its stake in Core & Main by 39.7% in the 2nd quarter. Tidal Investments LLC now owns 14,610 shares of the company's stock valued at $882,000 after buying an additional 4,151 shares in the last quarter. 94.19% of the stock is currently owned by hedge funds and other institutional investors.

About Core & Main

Core & Main, Inc is a specialty distributor focused on water, wastewater, storm drainage and fire protection products, and related services. The company provides infrastructure solutions to municipalities, private water companies and professional contractors across municipal, non-residential, and residential end markets, nationwide.