On Tuesday, Core & Main Inc. (NYSE:CNM) reported fourth-quarter earnings of 33 cents per share, missing the consensus of 36 cents.
Net sales increased 17.9% year over year to $1.69 billion, almost in line with the consensus estimate of $1.67 billion.
Net sales increased primarily due to acquisitions and higher volume. They were partially offset by slightly lower selling prices.
Also Read: US Stocks Likely To Open Lower After 2-Day Advance: Tariff Plan Could ‘Trigger Relief Rally,’ Says Expert
Gross profit for the quarter increased $67 million, or 17.4%, to $451 million, with a margin of 26.6% compared with 26.7% a year ago.
The overall decrease in gross profit margin was primarily attributable to larger prior-year benefits from strategic inventory investments during an inflationary period, partially offset by favorable impacts from the execution of gross margin initiatives and accretive acquisitions.
Operating income increased $8 million, or 6.9%, to $124 million. This is primarily attributable to higher gross profit partially offset by higher SG&A and amortization expenses.
Adjusted EBITDA increased $19 million to $179 million. The 11.9% jump is primarily attributable to higher gross profit, in part due to contributions from the 53rd selling week, partially offset by higher SG&A expenses.
Management Update: Steve LeClair, Core & Main’s CEO will transition to the role of executive chair.
Mark Witkowski, Core & Main’s CFO, will succeed LeClair as CEO. Additionally, Robyn Bradbury, Core & Main’s current senior vice president of finance and investor relations, will succeed Witkowski as CFO.
Guidance: Core & Main expects fiscal year 2025 sales of $7.6 billion—$7.8 billion versus the consensus of $7.85 billion, with adjusted EBITDA of $950 million—$1 billion.
“As we enter fiscal 2025, we expect overall demand in our industry to be flat to slightly positive with modest growth in municipal repair and replacement activity,” said Mark Witkowski, CFO of Core & Main.
Price Action: CNM stock is down 3.30% at $48 during the premarket session at the last check Tuesday.
Read Next:
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。