Key Takeaways
Core & Main ( CNM ) shares soared 15% Tuesday as the company reported better-than-expected results and raised its outlook as it benefited from acquisitions.
The water and sewer infrastructure provider posted third-quarter earnings per share (EPS) of $0.69, with revenue up 11.5% year-over-year to a record $2.04 billion. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $277 million was also an all-time high. All three were above consensus estimates of analysts polled by Visible Alpha.
The company said the sales gains came primarily from acquisitions and comparably higher end-market volumes.
Chief Executive Officer (CEO) Steve LeClair noted that Core & Main "completed five acquisitions during and after the quarter to expand our presence in key geographies, gain access to new product lines and add key talent."
Core & Main Raises Full-Year Net Sales, Adjusted EBITDA Outlook
LeClair added that because of the results, recent acquisitions, "and our expectation that both prices and our end markets will remain stable through the end of the year," Core & Main raised its fiscal 2024 guidance.
It now sees net sales of $7.35 billion and $7.45 billion, and adjusted EBITDA between $915 million to $935 million. In September, Core & Main had lowered its sales estimates to a range of $7.30 billion to $7.40 billion, and adjusted EBITDA to $900 million to $930 million.
Shares of Core & Main have risen about 38% this year.
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