Core & Main Inc (NYSE:CNM) stock rose 2.50% (As on March 26, 11:13:17 AM UTC-4, Source: Google Finance) after the company missed profit estimates for the fourth quarter of fiscal year 2024. Net sales increased for pipes, valves & fittings due to acquisitions and higher volumes partially offset by slightly lower selling prices. Net sales increased for storm drainage due to acquisitions and our ability to drive the adoption of advanced stormwater management systems. Net sales for fire protection products declined due to lower selling prices and lower end-market volumes partially offset by acquisitions. Net sales of meter products benefited from the ability to drive the adoption of smart meter technology through municipalities, increased product availability and acquisitions. Gross profit for the three months ended February 2, 2025 increased $67 million, or 17.4%, to $451 million compared with $384 million for the three months ended January 28, 2024. Gross profit as a percentage of net sales for the three months ended February 2, 2025 was 26.6% compared with 26.7% for the three months ended January 28, 2024. Net income for the three months ended February 2, 2025 decreased 11.8%, to $67 million compared with $76 million for the three months ended January 28, 2024.

CNM in the fourth quarter of FY24 has reported the adjusted earnings per share of 33 cents, missing the analysts’ estimates for the adjusted earnings per share of 36 cents. The company had reported the adjusted revenue growth of 17.9 percent to $1.69 billion in the fourth quarter of FY24, beating the analysts’ estimates for revenue of $1.68 billion. Adjusted EBITDA stood at $179 million, just below the estimate of $179.5 million.

For fiscal 2025, Core & Main forecasts revenue between $7.6 billion and $7.8 billion, above the $7.42 billion consensus. Net sales growth is projected at 2% to 5%, reflecting average daily sales growth of 4% to 7%.  Adjusted EBITDA is forecast to range from $950 million to $1 billion, with an EBITDA margin between 12.5% and 12.8%. Operating cash flow is expected to land between $570 million and $650 million.

Meanwhile, the company has announced executive leadership transitions as part of its long-term succession plan. Effective March 31, 2025, Steve LeClair will move from CEO to the role of executive chair, while Mark Witkowski, currently CFO, will become the new CEO. Robyn Bradbury, serving as the senior vice president of finance and investor relations, will step into the CFO position.