Core & Main Slides to 2-Year Low as Organic Growth Concerns Mount
CNM is trading near its 52-week low of $41.25 (0.8% above the low).
Summary
Core & Main shares fell as much as 6.2% to a two-year low after Q2 results revealed organic growth is nearly nonexistent. Six-month revenue rose only 1.3%, with the entire gain coming from acquisitions; storm drainage sales actually declined on lower volume. Gross margin slipped to 26.7% from 26.8%, adding to concerns about profit growth. Management reaffirmed full-year guidance, but investors are questioning how long acquisitions can mask soft underlying demand. The stock is down about 20% this year despite beating EPS estimates.
At the time of this announcement, CNM was trading at $41.57 on NYSE in the Trade & Services sector, with a market capitalization of approximately $8B. The 52-week trading range was $41.25 to $59.66. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.