Key Takeaways
- Core & Main said it sees full-year market conditions as flat as tariffs and other factors create uncertainty.
- The maker of water and sewer infrastructure products noted that it’s beginning to note a softness in the housing market.
- Core & Main also posted a slightly-lower-than-expected profit, while revenue beat estimates.
Core & Main (CNM) shares lost ground Tuesday as the water and sewer infrastructure provider missed profit estimates and warned that it sees a “flat” market for the year.
In the call with analysts, CFO Robyn Bradbury explained that the company expects a lower second half of the year, and that “reflects the level of uncertainty given … the tariffs, the higher interest rates and affordability concerns and things like that,” according to a transcript provided by AlphaSense.
In addition, CEO Mark Witkowski said looking at the housing market, Core & Main is “beginning to see signs of softening in response to general economic conditions and affordability pressures.”
Q1 Revenue Better Than Expected, EPS Slightly Worse
In the first quarter, the company reported earnings per share of $0.52, a penny below Visible Alpha forecasts. Revenue was up 10% year-over-year to $1.91 billion, better than expected.
Core & Main credited the revenue rise to higher volumes and acquisitions, boosted by increased demand for pipes, valves and fittings, storm drainage, and meter products. Sales declined for fire protection products, hurt by lower end-market volumes and falling prices.
Despite today’s 2.3% decline, shares of Core & Main are up about 14% year-to-date.
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