Core & Main, Inc. (NYSE:CNM) reported its Q4 results, with EPS of $0.28 beating the consensus estimate of $0.22. Revenue was $1.25 billion, compared to the consensus estimate of $1.12 billion.

The company unveiled its full 2022-year adjusted EBITDA guidance, which was well ahead of consensus estimates. The company expects Adj. EBITDA to range from $595 million to $635 million with an implied margin contraction of 80–90bp.

Analysts at Berenberg Bank said they have limited visibility into how long the current hyperinflationary trends experienced in the company’s commodity-based products can persist and therefore acknowledge there could be an upside risk to their near-term estimates. Nonetheless, it is likely inevitable for these same commodity-based products to begin experiencing equally sharp deflationary pressures, resulting in more normalized margins and, by extension, muted medium-term EBITDA growth. Consequently, the analysts leave their $27 price target and Hold rating unchanged.