ST. LOUIS - Core & Main Inc. (NYSE:CNM) reported third-quarter earnings that fell short of analyst expectations and lowered its full-year guidance, citing weather disruptions and softer end market volumes. CNM shares fell by 10.71% in premarket trading Wednesday following the announcement.
The infrastructure products distributor posted adjusted earnings per share of $0.61, missing the consensus estimate of $0.74. Revenue grew 5.5% year-over-year to $1.96 billion but came in below forecasts of $2.06 billion.
"We grew net sales by approximately 6% to a new quarterly record of $1.96 billion, reflecting strong growth from acquisitions that was partially offset by project delays from wet weather conditions and comparably lower end-market volumes," said CEO Steve LeClair.
Gross profit increased 3.4% to $518 million, though gross margin contracted 50 basis points to 26.4%. Adjusted EBITDA declined 4.8% to $257 million.
Looking ahead, Core & Main cut its fiscal 2024 outlook, now expecting full-year net sales of $7.3 billion to $7.4 billion, down from its prior range of $7.4 billion to $7.6 billion. The company also reduced its adjusted EBITDA forecast to $900 million to $930 million from $940 million to $990 million previously.
LeClair noted that while weather and market softness are impacting near-term results, the company remains optimistic about long-term demand in its end markets.
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