WCC Earnings Prediction
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 +5.39% 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.
WCC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
5.49B
-2.75%
0.18%
Gross Margin
21.25%
1.92%
1.09%
Operating Margin
6.22%
-12.52%
-2.20%
Net Margin
3.73%
-10.12%
-12.24%
EPS
3.81
-9.29%
-10.98%
No Data Available
WCC Earnings Analysis
Wesco International Inc. Corporation (WCC.N) Earnings Conference Call
Positive
Free Cash Flow Performance: 1. Strong Free Cash Flow: WESCO generated $280 million in free cash flow during Q3 2024, representing 145% of adjusted net income, and year-to-date free cash flow reached $777 million, equating to 154% of adjusted net income.
Data Center Solutions Growth: 2. Sales Growth in Data Center Solutions: The WESCO Data Center Solutions business experienced over 40% growth in Q3 2024, contributing significantly to overall sales performance despite challenges in other segments.
Gross Margin Improvement: 3. Improved Gross Margin: Gross margin increased by 50 basis points year-over-year, driven by a favorable mix and higher supplier volume rebates, indicating effective cost management and pricing strategies.
Backlog Growth in CSS: 4. Healthy Backlog in CSS: The Communications & Security Solutions (CSS) backlog grew by 8% sequentially and 15% year-over-year, reflecting strong order momentum and future sales potential.
Shareholder Value Enhancement: 5. Share Repurchases and Debt Reduction: WESCO repurchased $375 million worth of common shares and reduced net debt by approximately $475 million, demonstrating a commitment to returning value to shareholders and maintaining a strong balance sheet.
Negative
Sales Decline in UBS: 1. Declining Utility and Broadband Sales: Organic sales in the Utility and Broadband Solutions (UBS) segment were down 7% in the quarter, with reported sales down 18%, primarily due to the Integrated Supply divestiture and ongoing customer destocking.
EES Segment Sales Decline: 2. Weakness in EES Segment: EES organic sales decreased by 3% in the third quarter, with reported sales down about 2%, reflecting a broad-based industrial slowdown and project timing issues in the U.S.
Sales Decline from Divestiture: 3. Negative Impact from Integrated Supply Divestiture: The divestiture of the Integrated Supply business negatively impacted sales by approximately 350 basis points, contributing to overall sales weakness.
Backlog Decline in UBS: 4. Lower Backlog in UBS: Backlog for the UBS segment was down 7% sequentially and 14% year-over-year, indicating a delay in projects being converted from the opportunity pipeline into backlog.
Sales Outlook Decline: 5. Flat to Down Sales Outlook: The company expects fourth quarter reported sales to be flat to down low single digits compared to the third quarter, reflecting a challenging economic environment and one fewer workday.
WCC FAQs
How does WCC typically perform around its earnings report dates?
Is WESCO International, Inc. (WCC) Q3 2024 Earnings Call Summary positive or negative?
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WCC Earning Call Sentiment
WESCO International, Inc. (WCC) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
WCC.N
1.68%Positive
The earnings call summary presents mixed signals. Financial performance is generally stable with high free cash flow and share repurchases, but the reduced revenue and EBITDA guidance, competitive pressures, and supply chain challenges raise concerns. The Q&A section reveals management's confidence but lacks clarity on some issues. The positive aspects such as share repurchases and debt reduction balance the negative revenue outlook, leading to a neutral prediction. The absence of market cap data limits the prediction's precision.
