Core & Main (CNM) Q2 Earnings: What To Expect

Water and fire protection solutions company Core & Main (NYSE:CNM) will be reporting earnings tomorrow before the bell. Here’s what to expect.

Core & Main beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $1.74 billion, up 10.6% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ organic revenue estimates but a miss of analysts’ earnings 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 10.6% year on year to $2.06 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.74 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 infrastructure distributors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. MRC Global’s revenues decreased 4.5% year on year, meeting analysts’ expectations, and NOW reported revenues up 6.6%, in line with consensus estimates. MRC Global traded down 4.9% following the results while NOW was also down 8.8%.

Read our full analysis of MRC Global’s results here and NOW’s results here.

There has been positive sentiment among investors in the infrastructure distributors segment, with share prices up 6.6% on average over the last month. Core & Main’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $58.9 (compared to the current share price of $48.16).

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