11:09 AM EDT, 06/04/2024 (MT Newswires) -- Core & Main's ( CNM ) fiscal first-quarter revenue advanced more than predicted even as earnings unexpectedly declined, while the company raised the midpoint of its top-line outlook for the ongoing year amid recent acquisitions and improving end market trends.

Revenue rose to $1.74 billion for the three months ended April 28 from $1.57 billion the year earlier and topped the $1.72 billion average analyst estimate on Capital IQ. Earnings per share dipped by a penny to $0.49 year over year and missed the $0.53 Wall Street view. Shares of Core & Main ( CNM ) tumbled 13% in Tuesday trade.

The top-line expansion was driven by acquisitions and slight improvements in Core & Main's ( CNM ) end markets, according to the water, sewer and fire protection product distributor. Sales of pipes, valves, fittings and storm drainage products increased, while fire protection product revenue declined due to lower selling prices.

"End market demand was solid in the first quarter and our teams continue to make progress executing our product, customer and geographic expansion initiatives to drive above market growth," Chief Executive Steve LeClair said in a statement. "With an addressable market totaling $39 billion across highly fragmented markets, we are actively managing a strong pipeline of (merger and acquisition) opportunities."

For the ongoing fiscal year, Core & Main ( CNM ) now expects sales to range between $7.5 billion and $7.6 billion, lifting the $7.4 billion bottom end of the prior range. The Capital IQ-polled consensus is for revenue of $7.47 billion for the full year. The guidance implies a year-over-year gain over 2023's $6.7 billion.

The company raised its adjusted earnings before interest, taxes, depreciation and amortization target to between $935 million and $975 million, upping the lower-end of the prior range from $925 million previously.

"End market demand has been solid and we expect this to continue through the end of the year," LeClair said. "We expect sales volume to more than offset slight price deflation in fiscal 2024, yielding low single-digit average daily sales growth excluding acquisitions."

Year-to-date acquisitions are expected to contribute 7% to 8% to net sales growth this year. "The integrations of these businesses, including our largest acquisition to date, Dana Kepner, are progressing according to plan," he said.

Price: 49.01, Change: -7.09, Percent Change: -12.63