12:44 PM EDT, 03/25/2025 (MT Newswires) -- (Corrects the photo to reflect a Core & Main ( CNM ) image.)

Core & Main ( CNM ) gave guidance for slower sales growth in the current year after its fiscal fourth-quarter earnings unexpectedly fell, while the water, sewer and fire protection product distributor named a new chief executive officer on Tuesday.

Earnings for the three months ended Feb. 2 edged down to $0.33 per share from $0.34 a year earlier, while the consensus on FactSet was for an increase to $0.36. Sales rose 18% to $1.7 billion, surpassing views for $1.67 billion. The result was buoyed by acquisitions, higher volumes, and contributions from an extra week in the current year, while being partially offset by slightly lower selling prices.

"We continue to add new products, branches and capabilities to strengthen our leadership position in the industry," said Chief Executive Steve LeClair, who leaves his position to become executive chair. "Our strong cash flow generation and flexible balance sheet allow us to invest in organic growth and consolidate our fragmented markets through acquisitions, while returning capital to shareholders."

Core & Main ( CNM ) shares were down 1.3% in Tuesday trading, bringing the decline to 3.8% since the start of the year.

"Results came in modestly light on the quarter but did not really provide any notable surprises in the shape of results," Truist Managing Director Keith Hughes said in a note. "Management's guidance has the Street at the high end of the range for 2025, but does show revenue and (earnings before interest, taxes, depreciation, and amortisation) growth which could be difficult to find in our coverage this year."

The company expects net sales of $7.60 billion to $7.80 billion for the ongoing fiscal year, indicating a 2% to 5% growth year over year. Sales in the just-ended year rose 11% to $7.44 billion, above the $7.42 billion consensus. Analysts are looking $7.78 billion in sales for fiscal 2025.

"I am confident in our outlook for fiscal 2025 as the team continues to execute our sales strategies and improve operating leverage across our business," said LeClair. He will be replaced by Chief Financial Officer Mark Witkowski as CEO next Monday, the company said. Senior Vice President of Finance and Investor Relations Robyn Bradbury will take on the CFO role.

Price: 49.70, Change: +0.06, Percent Change: +0.12