Core & Main, Inc. (NYSE:CNM) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Core & Main, Inc. (NYSE:CNM) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results were roughly in line with estimates, with revenues of US$7.6b and statutory earnings per share of US$2.31. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Core & Main after the latest results.

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Taking into account the latest results, the most recent consensus for Core & Main from twelve analysts is for revenues of US$7.87b in 2027. If met, it would imply a credible 2.9% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 11% to US$2.60. Before this earnings report, the analysts had been forecasting revenues of US$7.93b and earnings per share (EPS) of US$2.68 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

Check out our latest analysis for Core & Main

The consensus price target held steady at US$60.69, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Core & Main at US$75.00 per share, while the most bearish prices it at US$40.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Core & Main's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 2.9% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.7% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Core & Main.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Core & Main. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$60.69, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Core & Main going out to 2029, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Core & Main that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.