BECN - Core & Main Plunges Despite A Generally Rosy Picture
2024-06-05 07:30:23 ET
Summary
- Core & Main's shares plunged 14.5% despite exceeding revenue expectations for Q1 2024 and narrowing guidance for the year.
- The company's revenue grew 10.6% YoY, driven by increases in sales of pipes, valves, fittings, storm drainage products, and meter products.
- Management remains optimistic about the company's growth potential, but profitability metrics and cash flow figures have worsened.
- The firm's long-term prospects are solid, but the stock is not yet cheap enough to warrant upside.
June 4th ended up being a really bad day for shareholders of Core & Main ( CNM ). Shares of the company, a firm that engages in the distribution of hundreds of thousands of SKUs (stock keeping units) of products such as pipes, valves, fittings, storm drainage products, fire protection products, and more, plunged, closing down 14.5%. This move lower came even after management reported revenue that exceeded expectations for the first quarter of its 2024 fiscal year and narrowed guidance in a positive way for 2024 in its entirety....
Core & Main Plunges Despite A Generally Rosy Picture