ST. LOUIS - Core & Main Inc. (NYSE:CNM), a prominent player in the infrastructure solutions sector, reported a modest dip in first-quarter earnings per share (EPS) but surpassed revenue expectations and provided an upbeat revenue forecast for fiscal 2024. The company's shares rose 4.6% as its guidance outshone consensus estimates.
For the first quarter ended April 28, 2024, Core & Main posted net sales of $1.74 billion, a 10.6% increase from the $1.57 billion reported in the same period last year and ahead of the analyst consensus of $1.72 billion. However, EPS for the quarter came in at $0.49, slightly below the analyst estimate of $0.52.
CEO Steve LeClair attributed the solid performance to the company's strategic initiatives and resilient business model, noting low single-digit organic net sales growth, double-digit total net sales growth, and robust operating cash flow.
LeClair also highlighted the successful integration of recent acquisitions, including Dana Kepner, which align with Core & Main's strategy to advance reliable infrastructure.
Despite the increase in net sales, net income saw a 24.1% decline to $101 million, primarily due to higher selling, general and administrative expenses, as well as increased amortization and interest expenses. Gross profit margin also decreased by 100 basis points to 26.9%.
Looking ahead, Core & Main raised its fiscal 2024 net sales forecast to a range of $7.5 to $7.6 billion, compared to the consensus estimate of $7.52 billion. Adjusted EBITDA is expected to range from $935 to $975 million. The company's confidence in its business model and ability to navigate macroeconomic changes underpins this positive outlook.
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