Water and fire protection solutions company Core & Main (NYSE: CNM) will be reporting earnings this Wednesday before market hours. Here’s what to expect.
Core & Main missed analysts’ revenue expectations last quarter, reporting revenues of $1.58 billion, down 6.9% year on year. It was a slower quarter for the company, with full-year EBITDA guidance missing analysts’ expectations and a slight miss of analysts’ revenue 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, the market is expecting Core & Main’s revenue to be flat year on year, slowing from the 9.8% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Core & Main has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Core & Main’s peers in the industrial distributors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Watsco posted flat year-on-year revenue, beating analysts’ expectations by 3.4%, and DNOW reported revenues up 97.5%, topping estimates by 12.7%. Watsco traded down 6.2% following the results while DNOW was also down 3.2%.
Read our full analysis of Watsco’s results here and DNOW’s results here.
Investors in the industrial distributors segment have had steady hands going into earnings, with share prices up 1.6% on average over the last month. Core & Main is up 7.6% during the same time and is heading into earnings with an average analyst price target of $60.60 (compared to the current share price of $52.63).
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