WESCO Reports Q4 Earnings with Revenue Beat but EPS Miss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy WCC?
Source: seekingalpha
- Earnings Highlights: WESCO's Q4 non-GAAP EPS of $3.40 missed expectations by $0.49, indicating pressure on profitability; however, revenue reached $6.1 billion, up 10.9% year-over-year, exceeding market expectations by $70 million, showcasing strong sales performance.
- Organic Sales Growth: The company reported a 9% year-over-year organic sales increase, with data center sales hitting $1.2 billion, up approximately 30%, reflecting robust demand in the rapidly growing data center market, which significantly contributed to overall performance.
- Future Outlook: WESCO anticipates 2026 sales growth between 5% and 8%, with adjusted EBITDA margin at approximately 6.8% at the midpoint, and adjusted diluted EPS projected between $14.50 and $16.50, demonstrating confidence in future growth prospects.
- Dividend Increase Plan: The company plans to raise its annual common stock dividend by over 10% to $2.00 per share, indicating WESCO's commitment to shareholder returns while also reflecting the stability of its cash flow and ongoing improvement in profitability.
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Analyst Views on WCC
Wall Street analysts forecast WCC stock price to fall
6 Analyst Rating
6 Buy
0 Hold
0 Sell
Strong Buy
Current: 295.710
Low
245.00
Averages
292.67
High
307.00
Current: 295.710
Low
245.00
Averages
292.67
High
307.00
About WCC
WESCO International, Inc. is a provider of business-to-business distribution, logistics services and supply chain solutions. The Company's segments include Electrical & Electronic Solutions (EES), Communications & Security Solutions (CSS) and Utility & Broadband Solutions (UBS). EES segment supplies a range of products and solutions primarily to construction, industrial and original equipment manufacturer customers. EES product portfolio includes a range of electrical equipment and supplies, automation and connected devices, and others. CSS segment specializes in data center, network infrastructure and security solutions. In the security business, CSS offers on premise, cloud or hybrid comprehensive solutions for video surveillance, fire and intrusion detection, and others. UBS segment provides products and services to investor-owned utilities, public power companies, including municipalities, as well as global service providers, wireless providers, broadband operators and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Employment Cost Index Decline: The US Q4 employment cost index rose by 0.7% quarter-over-quarter, below the expected 0.8%, marking the smallest increase in 4.5 years, which may prompt the Fed to reconsider its interest rate policy, further supporting the stock market.
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See More
