10:31 AM EST, 12/03/2024 (MT Newswires) -- Core & Main ( CNM ) lifted its full-year sales outlook on Tuesday as the water, sewer and fire protection product distributor recorded better-than-expected fiscal third-quarter results.

The company now anticipates sales to come in between $7.35 billion and $7.45 billion for fiscal 2024, Chief Executive Steve LeClair said in a statement. The company previously projected sales to be in a range of $7.3 billion to $7.4 billion, while the current consensus on FactSet is for $7.34 billion.

Adjusted earnings before interest, taxes, amortization and depreciation is now pegged at $915 million to $935 million, up from the prior guidance of $900 million to $930 million. The stock jumped 13% in Tuesday trading.

"We are raising our full-year outlook based on results to-date, recent acquisitions, and our expectation that both prices and our end markets will remain stable through the end of the year," according to LeClair. "The non-discretionary repair and replacement portion of our business remains resilient, and we are pleased with our level of execution to expand gross margins sequentially from the second quarter."

For the three-month period ended Oct. 27, Core & Main ( CNM ) reported net income of $0.69 a share, up from $0.65 the year before, which was also the Street's view for the third quarter. Sales rose about 12% year over year to $2.04 billion, ahead of analysts' $1.99 billion estimate.

The company said its acquisitions and comparably higher end-market volumes mainly helped drive the revenue increase, partially offset by "slightly" lower selling prices. Sales for pipes, valves and fittings and storm drainage products increased buoyed in part by acquisitions. Revenue from fire protection products declined due to lower prices and volumes.

Gross profit as a percentage of sales slipped to 26.6% from 27% in the year-ago quarter, mainly due to larger prior-year benefits from inventory investments during an inflationary period. Total operating expenses rose to $320 million from $277 million last year, according to the company.

"We delivered strong performance in the third quarter, including record quarterly sales and adjusted EBITDA, demonstrating that Core & Main ( CNM ) can grow in any environment," LeClair said. "Looking ahead, we remain well-positioned to capitalize on a range of strategic growth opportunities while delivering value to our customers and shareholders."

Price: 54.44, Change: +6.15, Percent Change: +12.74