CNM - Why Core & Main Sank Today
2024-06-04 16:11:00 ET
Shares of industrial water and wastewater pipe and equipment maker Core & Main (NYSE: CNM) sank 16.7% on Tuesday, as of 2:12 p.m. EDT.
The company reported earnings this morning, and while revenue came in ahead of expectations, the company's falling margins apparently left a bad taste in investors' mouths. Also, given that the stock was already up 39% on year heading into Tuesday, a mixed result wasn't enough to overcome expectations.
In the quarter, Core & Main saw revenue increase 10.6% to $1.74 billion, ahead of expectations. But the problem was that gross profits only rose 6.6%, and net income actually decreased by 2.4%. Like its peers, Core & Main saw a big increase in pricing for its products following the pandemic, but that pricing is normalizing now. So while the company is still growing, its bottom line has stalled.
For further details see:
Why Core & Main Sank Today