According to Benzinga Pro, during Q1, Core & Main (NYSE:CNM) earned $137.00 million, a 73.86% increase from the preceding quarter. Core & Main also posted a total of $1.60 billion in sales, a 28.25% increase since Q4. Core & Main earned $78.80 million, and sales totaled $1.25 billion in Q4.
What Is ROIC?
Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company’s ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q1, Core & Main posted an ROIC of 6.08%.
Keep in mind, while ROIC is a good measure of a company’s recent performance, it is not a highly reliable predictor of a company’s earnings or sales in the near future.
Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company’s ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q1, Core & Main posted an ROIC of 6.08%.
Keep in mind, while ROIC is a good measure of a company’s recent performance, it is not a highly reliable predictor of a company’s earnings or sales in the near future.
For Core & Main, the positive return on invested capital ratio of 6.08% suggests that management is allocating their capital effectively. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns.
Analyst Predictions
Core & Main reported Q1 earnings per share at $0.5/share, which beat analyst predictions of $0.35/share.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
