- Wesco’s Adjusted Earnings Per Share (EPS) for Q4 stood at $3.16, missing the estimate of $3.24, but up from $2.65 the previous year.
- Reported EPS was $3.03, increasing from $2.45 year-over-year.
- Net sales reached $5.50 billion, a 0.5% increase year-over-year, surpassing the $5.41 billion estimate.
- Electrical & Electronic Solutions sales were $2.12 billion, up 1.9% year-over-year, above the $2.1 billion estimate.
- Communications & Security Solutions sales surged by 14% year-over-year to $2.05 billion, exceeding the expected $1.97 billion.
- Utility & Broadband Solutions sales declined by 17% year-over-year to $1.33 billion, slightly below the $1.34 billion estimate.
- Adjusted EBITDA was $370.5 million, down 3.8% year-over-year, missing the $376 million estimate.
- The Adjusted EBITDA margin was 6.7%, down from 7% year-over-year, and below the estimate of 7.01%.
- Adjusted income from operations fell by 5% year-over-year to $311.2 million, below the $325.1 million estimate.
- The Adjusted operating margin was 5.7%, down from 6% the previous year, and short of the 6.06% estimate.
- Wesco plans to increase its common stock dividend by 10% to $1.82 per share and continue its share buyback program.
- Significant sales growth in the quarter was driven by over 70% growth in the global Data Center business and 20% growth in Broadband Solutions.
- Sales were negatively impacted by a slowdown with industrial customers and continued weakness in the utility business.
- Wesco is positioned for future growth due to trends in AI-driven data centers, increased power generation, electrification, automation, and reshoring.
- The investment community shows confidence with 9 buys, 2 holds, and 0 sells on Wesco’s stock.
Wesco International on Smartkarma
Analysts on Smartkarma are buzzing about the coverage of Wesco International. Baptista Research recently published two reports highlighting the company’s financial performance and business strategies. In the report “WESCO International’s Game-Changing Electrification Strategy Powering a Renewable Revolution! – Major Drivers,” the analysts discussed the positive trends and challenges faced by Wesco International, with a focus on the data center business’s acceleration. Similarly, in the report “WESCO International: Initiation Of Coverage – An Insight Into Its Core Business Strategy! – Major Drivers,” Baptista Research delved into the company’s second-quarter 2024 financial results, noting a slight decline in sales influenced by the economic backdrop.
Another analyst, Value Investors Club, shared insights in the report “Wesco Intl Inc (WCC) – Friday, Jun 7, 2024,” emphasizing Wesco International as a valuable investment opportunity, especially in the renewable energy market. The report highlighted Wesco’s resilience to economic downturns, thanks to countercyclical cash flows and its vital role in various supply chains. This positive sentiment towards Wesco’s market positioning and growth potential paints a promising future for the company, as highlighted by Value Investors Club‘s analysis.
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. is set for a promising long-term future, according to Smartkarma Smart Scores. With a strong growth score of 4, the company is positioned for expansion and development in the coming years. This indicates a positive outlook for WESCO’s potential to increase its market presence and profitability over time. Additionally, a momentum score of 4 suggests that the company is gaining traction in the market, showing signs of upward movement and investor interest.
Despite facing some challenges in terms of value and resilience, with scores of 3 and 2 respectively, WESCO International remains a robust player in the distribution of electrical products and industrial supplies. The company’s global presence in countries like the United States, Canada, and the United Kingdom, coupled with its integrated supply services, positions it well to navigate changing market conditions. While the dividend and resilience scores could be improved, WESCO’s strong growth and momentum scores point towards a promising long-term outlook for the company.
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.
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