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Core & Main (CNM) to Post Q2 Earnings: What's in the Offing?

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Core & Main, Inc. (CNM - Free Report) is scheduled to report second-quarter fiscal 2024 results on Sep 6, 2023, before the bell.

The company has an impressive earnings surprise history. Earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 20.5%.

Core & Main, Inc. Price and EPS Surprise Core & Main, Inc. Price and EPS Surprise

Core & Main, Inc. price-eps-surprise | Core & Main, Inc. Quote

Q2 Expectations

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $1.86 billion, indicating a slight decline from the year-ago reported quarter. We expect lower sales volumes, particularly from pipes, valves & fittings, and fire protection products in the quarter due to a reduction in residential lot development. Sales growth due to acquisitions is expected to offset these headwinds to a great extent.

The consensus estimate for earnings in the to-be-reported quarter is pegged at 65 cents, indicating a 27% decline from the year-ago reported quarter. Core & Main closed three acquisitions in the fiscal first quarter. Therefore, there is a strong chance of higher labor costs and personal expenses hurting the bottom line in the fiscal second quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Core & Main this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here, as elaborated below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Core & Main has an Earnings ESP of 0.00% and a Zacks Rank #3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Earnings Snapshots of Some Service Providers

Omnicom (OMC - Free Report) reported mixed second-quarter 2023 results, wherein the company’s earnings surpassed the Zacks Consensus Estimate but revenues missed the same.

OMC’s earnings of $1.81 per share beat the consensus estimate by 0.6% and increased 7.7% year over year. Total revenues of $3.6 billion lagged the consensus estimate by 0.3% but increased 1.2% year over year.

Equifax (EFX - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.

EFX’s adjusted earnings came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% but matched the year-ago figure on a reported basis.

Interpublic’s (IPG - Free Report) second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same.

IPG’s adjusted earnings came in at 74 cents per share, beating the Zacks Consensus Estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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