The chart below shows how WCC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WCC sees a +4.70% change in stock price 10 days leading up to the earnings, and a +5.01% change 10 days following the report. On the earnings day itself, the stock moves by -5.63%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Global Data Center Surge: Accelerated growth in global data center business, up more than 70%.
Broadband Market Demand Growth: Broadband business experienced a 20% growth, indicating strong market demand.
Record Free Cash Flow: Generated $268 million of free cash flow in Q4, contributing to a record full-year free cash flow of over $1 billion, or 154% of adjusted net income.
Debt Reduction and Share Buyback: Reduced net debt by $431 million and repurchased $425 million of shares, enhancing shareholder value.
Dividend Increase Announcement: Plan to increase common stock dividend by 10% to $1.82 per share in 2025, reflecting confidence in future earnings growth.
Negative
Earnings Miss Reported: WESCO International, Inc. missed earnings expectations with reported EPS of $3.16, falling short of the expected $3.23.
Revenue Decline Analysis: Organic sales for the full year decreased by 0.5%, with reported sales down 2.5%, indicating a decline in overall revenue performance.
Flat Organic Sales Performance: In the fourth quarter, organic sales were flat year-over-year, with a significant drop in sales per workday in December, finishing down low single digits.
CSS Segment EBITDA Decline: Adjusted EBITDA margin for the CSS segment decreased by 150 basis points compared to the prior year, primarily due to the lower gross margin from large customer data center projects.
Sales Decline Analysis: The utility business experienced a 6% decline in organic sales in the fourth quarter, with reported sales down 17%, reflecting ongoing market headwinds.
WESCO International, Inc. (NYSE:WCC) Q4 2024 Earnings Call Transcript
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