Core & Main (NYSE:CNM) Releases Quarterly 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) released its quarterly earnings results on Tuesday. The company reported $0.87 EPS for the quarter, beating analysts' consensus estimates of $0.79 by $0.08, Zacks reports. The firm had revenue of $2.09 billion during the quarter, compared to analyst estimates of $2.12 billion. Core & Main had a net margin of 5.57% and a return on equity of 25.44%. The business's revenue for the quarter was up 6.6% on a year-over-year basis. During the same period in the previous year, the business earned $0.61 EPS. Core & Main updated its FY 2025 guidance to EPS.

Core & Main Trading Down 1.4%

Core & Main stock traded down $0.69 during mid-day trading on Friday, hitting $48.76. The company's stock had a trading volume of 3,652,711 shares, compared to its average volume of 2,114,408. The company has a debt-to-equity ratio of 1.14, a current ratio of 2.25 and a quick ratio of 1.10. The stock has a market cap of $9.61 billion, a price-to-earnings ratio of 21.77, a price-to-earnings-growth ratio of 1.45 and a beta of 1.04. The business has a 50 day moving average price of $63.12 and a 200-day moving average price of $56.02. Core & Main has a 12 month low of $39.86 and a 12 month high of $67.18.

Insiders Place Their Bets

In other Core & Main news, Director James G. Castellano sold 43,994 shares of the business's stock in a transaction on Friday, July 18th. The shares were sold at an average price of $61.98, for a total value of $2,726,748.12. Following the completion of the sale, the director directly owned 4,638 shares of the company's stock, valued at $287,463.24. The trade was a 90.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Stephen O. Leclair sold 44,972 shares of the business's stock in a transaction on Monday, July 7th. The stock was 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 directly owned 70,736 shares of the company's stock, valued at $4,379,265.76. This represents a 38.87% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 422,956 shares of company stock valued at $26,343,241 over the last three months. 3.53% of the stock is currently owned by company insiders.

Institutional Trading of Core & Main

Several hedge funds have recently added to or reduced their stakes in the business. Bank of America Corp DE lifted its stake in Core & Main by 20.6% in the second quarter. Bank of America Corp DE now owns 2,255,531 shares of the company's stock worth $136,121,000 after purchasing an additional 385,659 shares during the last quarter. Balyasny Asset Management L.P. raised its stake in shares of Core & Main by 18.2% during the second quarter. Balyasny Asset Management L.P. now owns 1,045,215 shares of the company's stock valued at $63,079,000 after acquiring an additional 160,937 shares during the last quarter. BNP Paribas Financial Markets raised its stake in shares of Core & Main by 480.9% during the second quarter. BNP Paribas Financial Markets now owns 306,219 shares of the company's stock valued at $18,480,000 after acquiring an additional 253,503 shares during the last quarter. Goldman Sachs Group Inc. raised its stake in shares of Core & Main by 23.1% during the first quarter. Goldman Sachs Group Inc. now owns 291,988 shares of the company's stock valued at $14,106,000 after acquiring an additional 54,854 shares during the last quarter. Finally, Sei Investments Co. raised its stake in shares of Core & Main by 59.6% during the second quarter. Sei Investments Co. now owns 149,543 shares of the company's stock valued at $9,025,000 after acquiring an additional 55,827 shares during the last quarter. 94.19% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on CNM. Wells Fargo & Company reduced their price target on shares of Core & Main from $70.00 to $58.00 and set an "overweight" rating for the company in a research report on Wednesday. Truist Financial cut their target price on shares of Core & Main from $56.00 to $50.00 and set a "hold" rating for the company in a research report on Thursday. Citigroup cut their target price on shares of Core & Main from $62.00 to $54.00 and set a "neutral" rating for the company in a research report on Wednesday. Barclays cut their target price on shares of Core & Main from $69.00 to $65.00 and set an "overweight" rating for the company in a research report on Wednesday. Finally, Loop Capital reiterated a "hold" rating and issued a $68.00 target price on shares of Core & Main in a research report on Monday, July 28th. Six analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $59.60.

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.