Core & Main Earnings: What To Look For From CNM

Water and fire protection solutions company Core & Main (NYSE:CNM) will be reporting earnings tomorrow before the bell. Here's what investors should know.

Core & Main met analysts' revenue expectations last quarter, reporting revenues of $1.44 billion, up 4.8% year on year. It was a solid quarter for the company, with full-year revenue guidance exceeding analysts' expectations and a decent beat of analysts' organic revenue estimates.

Is Core & Main a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Core & Main's revenue to grow 9.4% year on year to $1.72 billion, a reversal from the 1.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.52 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Core & Main has missed Wall Street's revenue estimates three 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, missing analysts' expectations by 2%, and Boise Cascade reported revenues up 6.5%, topping estimates by 5.2%. Watsco traded up 7.5% following the results while Boise Cascade was down 6.2%.

Read our full analysis of Watsco's results here and Boise Cascade's results here.

Investors in the industrial distributors segment have had steady hands going into earnings, with share prices flat over the last month. Core & Main is down 3.3% during the same time and is heading into earnings with an average analyst price target of $60.9 (compared to the current share price of $57.56).

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