- Adjusted Earnings Per Share (EPS): Wesco’s adjusted EPS for the first quarter was $2.21, below analysts’ expectations of $2.32 and slightly down from last year’s $2.30.
- Reported EPS: Despite the adjusted EPS miss, the reported EPS was $2.10, up from $1.95 in the previous year.
- Net Sales: Total net sales came in at $5.34 billion, a slight decrease of 0.1% compared to the previous year but exceeded the estimate of $5.26 billion.
- Segment Performance:
- Electrical & Electronic Solutions saw a sales decline of 1.6% year-over-year to $2.07 billion, marginally below the estimate of $2.08 billion.
- Communications & Security Solutions experienced a robust 20% sales increase, reaching $2.00 billion, surpassing the estimate of $1.86 billion.
- Utility & Broadband Solutions sales dropped by 19% to $1.28 billion, below the expected $1.34 billion.
- Adjusted EBITDA: The adjusted EBITDA was $310.7 million, an 8.7% decrease year-over-year, falling short of the $320.3 million estimate.
- Adjusted EBITDA Margin: The margin fell to 5.8% from 6.4% last year, not meeting the anticipated 6.16%.
- Adjusted Income from Operations: The adjusted income was $248.2 million, a 12% decline from the previous year, missing the $265 million forecast.
- Adjusted Operating Margin: This margin decreased to 4.6% from 5.3% year-over-year, under the estimated 5.12%.
- Outlook for 2025: Wesco reaffirmed its full-year outlook, citing positive momentum from the first four months of the year.
- Strategic Focus: The company remains focused on cross-selling activities, improving enterprise-wide margins, and furthering operational improvements through tech transformation.
- Analyst Recommendations: Currently, there are 10 buy ratings, 1 hold, and no sell ratings for Wesco.
Wesco International on Smartkarma
Smartkarma, an independent investment research network, hosts analyst coverage of Wesco International by Baptista Research. In a report titled “WESCO International: Why Its Vendor Consolidation Strategy Is a Potential Goldmine!“, Baptista Research discusses the company’s mixed fourth-quarter and full-year 2024 earnings. While highlighting a return to sales growth driven by Data Center and Broadband businesses, Wesco International faced challenges with industrial customers and weakness in the Utility segment.
Another report by Baptista Research on Smartkarma, titled “WESCO International’s Game-Changing Electrification Strategy Powering a Renewable Revolution! – Major Drivers“, covers the company’s third-quarter 2024 financial results. It reveals a combination of positive trends and ongoing challenges. Notably, the data center business saw significant growth, contrasting the continued weakness in the utility and broadband sectors. Despite facing headwinds, Wesco International‘s sales in the third quarter exceeded previous expectations, reaching the top end of their guidance range.
A look at Wesco International Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
WESCO International, Inc. distributes electrical products and industrial maintenance supplies globally. According to Smartkarma Smart Scores, the company’s long-term outlook is positive. With a solid score in Growth and Momentum, Wesco International shows promise for future expansion and market performance.
Although the scores for Dividend and Resilience are not as high, the overall outlook remains optimistic due to the strong performance in Growth and Momentum factors. As Wesco International continues to provide integrated supply services across various countries, its ability to capitalize on growth opportunities and maintain market momentum positions the company well for long-term success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
