Core & Main Inc (NYSE:CNM) stock fell 1.56% (As on December 4, 11:15:18 AM UTC-4, Source: Google Finance) after the company reported better-than-expected third quarter results and raised its full-year outlook. Gross profit increased 9.9% to $543 million. Net income decreased 11.4% to $140 million. The decrease in net income was primarily attributable to an increase in interest expense and income tax expense partially offset by an increase in operating income. Adjusted EBITDA (Non-GAAP) increased 6.5% to $277 million; Adjusted EBITDA margin (Non-GAAP) was 13.6%. The company has completed five acquisitions during and after the quarter: HM Pipe Products, GroGreen Solutions, Green Equipment Company, Eastcom Associates and ARGCO Northeast.

Moreover, net sales increased for pipes, valves & fittings due to acquisitions and comparably higher end-market volumes partially offset by slightly lower selling prices. Net sales increased for storm drainage products due to acquisitions and the ability to drive the adoption of advanced storm water management systems. Net sales for fire protection products declined due to lower selling prices and comparably lower end-market volumes. Net sales of meter products benefited from the ability to drive the adoption of smart meter technology through municipalities, increased product availability and acquisitions. Operating income for the three months ended October 27, 2024 increased $6 million, or 2.8%, to $223 million compared with $217 million during the three months ended October 29, 2023.

CNM in the third quarter of FY 24 has reported the adjusted earnings per share of 69 cents, beating the analysts’ estimates for the adjusted earnings per share of 65 cents. The company had reported the adjusted revenue growth of 11.5 percent to $2.04 billion in the third quarter of FY 24, beating the analysts’ estimates for revenue of $1.99 billion. The company said net sales increased primarily due to acquisitions and higher end-market volumes, partially offset by slightly lower selling prices. Gross profit margin was 26.6%, up 20 basis points sequentially from Q2. The overall decline in gross profit as a percentage of net sales was primarily attributable to larger prior year benefits from strategic inventory investments during an inflationary period partially offset by favorable impacts from the execution of the gross margin initiatives and accretive acquisitions.

For the full fiscal year 2024, Core & Main now expects net sales of $7.35 billion to $7.45 billion and adjusted EBITDA of $915 million to $935 million, up from its previous guidance.