Core & Main Stock Soars on Strong Results, Boosted Outlook | Global News Avenue

core and main (CNM) shares soared 15% on Tuesday after the company reported better-than-expected results and raised its outlook as it benefited from acquisitions.

The water and wastewater infrastructure provider reports third-quarter earnings Earnings per share (EPS) 0.69 US dollars, and revenue increased 11.5% year-on-year to a record US$2.04 billion. After adjustment Earnings before interest, taxes, depreciation and amortization (EBITDA) $277 million was also a record high. All three topped consensus estimates among analysts polled by Visible Alpha.

The company said sales growth came primarily from acquisitions and relatively higher end-market volumes.

Chief Executive Officer (CEO) Steve LeClair noted that Core & Main “completed five acquisitions during and following the quarter to expand our presence in key geographies, acquire new product lines and add key talent.”

Core & Main raises full-year net sales and adjusted EBITDA outlook

LeClair added that Core & Main raised its fiscal 2024 guidance due to performance, recent acquisitions and “our expectation that prices and end markets will remain stable through the end of the year.”

Currently, the company’s net sales range from US$7.35 billion to US$7.45 billion, and adjusted EBITDA ranges from US$915 million to US$935 million. In September, Core & Main lowered its sales forecast to $7.3 billion to $7.4 billion and adjusted EBITDA to $900 million to $930 million.

Core & Main’s shares have risen about 38% this year.