Core & Main (NYSE:CNM) Announces Quarterly Earnings Results

Core & Main (NYSE:CNM) announced its earnings results on Wednesday. The company reported $0.72 EPS for the quarter, topping the consensus estimate of $0.53 by $0.19, FiscalAI reports. The firm had revenue of $1.91 billion for the quarter, compared to the consensus estimate of $1.89 billion. Core & Main had a return on equity of 26.17% and a net margin of 5.87%.The business’s quarterly revenue was down .1% compared to the same quarter last year. During the same period in the previous year, the business earned $0.52 EPS.

Here are the key takeaways from Core & Main’s conference call:

• Core & Main reported a solid first quarter with net sales of $1.9 billion, adjusted EBITDA of $226 million, and adjusted diluted EPS of $0.72, while reaffirming its full-year fiscal 2026 outlook.
• Municipal demand remained strong, supported by aging water infrastructure, repair-and-replacement work, and durable state and local funding sources that management says should keep demand resilient through the year.
• The company highlighted continued momentum in Smart Utility and Treatment Plant Solutions, both of which delivered double-digit or high-single-digit growth and are expanding Core & Main’s share in complex municipal projects.
• Gross margin improved 50 basis points year over year to 27.2% on private label growth, sourcing optimization, and disciplined pricing, and the company said it expects margins to remain at similar levels for the rest of the year.
• Management maintained guidance despite a mixed backdrop: residential remains weak, but data centers, manufacturing, and greenfield expansion are helping offset softer private construction, with slight growth expected to build through the back half of the year.

Core & Main Stock Up 1.3%

CNM stock opened at $50.07 on Friday. The company has a debt-to-equity ratio of 1.00, a quick ratio of 1.51 and a current ratio of 2.31. The stock’s 50 day simple moving average is $49.85 and its 200 day simple moving average is $52.11. The company has a market cap of $9.75 billion, a P/E ratio of 21.22, a price-to-earnings-growth ratio of 1.78 and a beta of 0.91. Core & Main has a fifty-two week low of $43.96 and a fifty-two week high of $67.18.

Core & Main News Roundup

Here are the key news stories impacting Core & Main this week:

• Positive Sentiment: Core & Main reported Q1 earnings of $0.72 per share, well ahead of expectations, and revenue of $1.91 billion also topped estimates, signaling stronger-than-expected operating performance. Core & Main Announces Fiscal 2026 First Quarter Results
• Positive Sentiment: Management reaffirmed FY2026 guidance and pointed to revenue of $7.8 billion to $7.9 billion, which is slightly above consensus and suggests confidence in demand trends and margin execution. Core & Main beats first quarter estimates, reaffirms outlook
• Positive Sentiment: Post-earnings coverage highlighted “municipal strength” and margin gains, with the company leaning on durable water infrastructure work while expanding profitability. 4 Manufacturing Tools Stocks to Watch Despite Industry Headwinds
• Neutral Sentiment: Citigroup trimmed its price target to $53 from $54 and kept a neutral rating, indicating limited near-term upside from current levels despite the earnings beat. Benzinga analyst update
• Neutral Sentiment: Several articles focused on valuation and transcript recaps, suggesting investors are still assessing whether the recent pullback creates an attractive entry point after the post-earnings move. Assessing Core & Main (CNM) Valuation After Recent Share Price Pullback
• Negative Sentiment: Some coverage noted that pipes, valves, fittings, and storm drainage remain softer, and that the stock’s recent drop may reflect concern that not all end markets are improving evenly. Core & Main’s Drop Doesn’t Offer An Entry Point

Wall Street Analysts Forecast Growth

Several research analysts have commented on the company. Barclays cut their target price on Core & Main from $63.00 to $62.00 and set an “overweight” rating on the stock in a report on Wednesday, March 25th. The Goldman Sachs Group reaffirmed a “neutral” rating and set a $24.00 target price on shares of Core & Main in a report on Thursday. Deutsche Bank Aktiengesellschaft cut their target price on Core & Main from $65.00 to $62.00 and set a “buy” rating on the stock in a report on Wednesday, March 25th. Finally, Citigroup dropped their price objective on Core & Main from $54.00 to $53.00 and set a “neutral” rating on the stock in a research note on Thursday. Seven research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $57.73.

Insider Buying and Selling

In other news, CFO Robyn L. Bradbury sold 5,000 shares of the company’s stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $52.54, for a total value of $262,700.00. Following the completion of the transaction, the chief financial officer directly owned 12,500 shares of the company’s stock, valued at $656,750. This represents a 28.57% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James D. Hope acquired 1,972 shares of the company’s stock in a transaction that occurred on Tuesday, April 7th. The stock was purchased at an average price of $50.70 per share, for a total transaction of $99,980.40. Following the purchase, the director owned 6,939 shares of the company’s stock, valued at $351,807.30. The trade was a 39.70% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 1.51% of the company’s stock.

Hedge Funds Weigh In On Core & Main

Institutional investors have recently bought and sold shares of the company. EverSource Wealth Advisors LLC lifted its stake in Core & Main by 145.4% in the second quarter. EverSource Wealth Advisors LLC now owns 454 shares of the company’s stock valued at $27,000 after purchasing an additional 269 shares during the last quarter. Cubist Systematic Strategies LLC lifted its stake in Core & Main by 262.0% in the first quarter. Cubist Systematic Strategies LLC now owns 724 shares of the company’s stock valued at $35,000 after purchasing an additional 524 shares during the last quarter. Quarry LP purchased a new position in Core & Main in the fourth quarter valued at approximately $38,000. Los Angeles Capital Management LLC purchased a new position in Core & Main in the fourth quarter valued at approximately $44,000. Finally, Wilmington Savings Fund Society FSB lifted its stake in Core & Main by 47.8% in the third quarter. Wilmington Savings Fund Society FSB now owns 961 shares of the company’s stock valued at $52,000 after purchasing an additional 311 shares during the last quarter. Hedge funds and other institutional investors own 94.19% of the company’s stock.

About Core & Main

Core & Main, Inc (NYSE:CNM) is a leading distributor of water, sewer, storm drainage and fire protection products across North America. The company’s product portfolio includes valves, hydrants, pipe and fittings, meters, couplings and other essential components that support municipal, industrial and environmental infrastructure projects. By combining a comprehensive inventory with logistics and technical support, Core & Main helps customers address complex water system and distribution challenges.

With more than 300 branch locations and over 3,500 employees, Core & Main serves a diverse customer base that includes municipalities, contractors, engineers and utility providers.