- Wesco’s adjusted EPS for the second quarter is $3.39, surpassing the estimate of $3.35 and higher than last year’s $3.21.
- The reported EPS is $3.83, which is lower than the previous year’s $4.28.
- Net sales for the quarter reached $5.90 billion, marking a 7.7% year-over-year increase and exceeding the estimate of $5.8 billion.
- Sales in Electrical & Electronic Solutions were $2.26 billion, a 3.9% rise year-over-year, surpassing the estimate of $2.19 billion.
- Communications & Security Solutions sales achieved $2.27 billion, up 21% year-over-year, beating the estimate of $2.21 billion.
- Utility & Broadband Solutions sales decreased by 4.5% year-over-year to $1.38 billion, falling short of the $1.41 billion estimate.
- Adjusted EBITDA stood at $394.2 million, a slight decline of 1.5% from the previous year but above the $391.1 million estimate.
- The adjusted EBITDA margin was reported at 6.7%, slightly lower than last year’s 7.3% and below the estimate of 6.74%.
- Adjusted income from operations was $330.3 million, a 5.2% year-over-year decline, missing the estimate of $338.9 million.
- The adjusted operating margin was 5.6%, down from last year’s 6.4% and below the estimate of 5.78%.
- Organic growth led by 17% in Communications & Security Solutions and 6% in Electrical & Electronic Solutions.
- The company is raising its full-year organic sales growth outlook due to positive momentum in 2025.
- Market analyst ratings for Wesco include 8 buys, 3 holds, and 0 sells.
Wesco International on Smartkarma
Independent analysts on Smartkarma have provided insightful coverage of Wesco International. Baptista Research, in their research report titled “WESCO International Powers Utility Rebound with Grid Modernization & Strategic Contracts,” highlighted Wesco’s strong performance in the first quarter of 2025. The company reported a 6% organic sales growth driven by a significant increase in their data center business and surpluses in the OEM and Broadband segments. This performance exceeded expectations and showcased Wesco’s ability to capitalize on high-demand areas in technology infrastructure while maintaining a stable gross margin amidst global tariff impacts.
In another report by Baptista Research, titled “WESCO International: Why Its Vendor Consolidation Strategy Is a Potential Goldmine,” analysts discussed Wesco’s mixed results in the fourth quarter and full-year 2024 earnings call. Despite a return to sales growth in Q4, driven by impressive growth in the Data Center and Broadband businesses, Wesco faced challenges due to a sales slowdown with industrial customers and weakness in the Utility segment. The analysis underscores the importance of Wesco’s strategic vendor consolidation strategy for future growth opportunities in the market.
A look at Wesco International Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
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 showing a promising long-term outlook based on the Smartkarma Smart Scores analysis. With a strong momentum score of 5, the company is demonstrating excellent performance trends. Additionally, its growth score of 4 indicates potential for expansion and development in the future. These positive scores suggest a bright future ahead for WESCO International as it continues to distribute electrical products and industrial supplies while offering integrated supply services.
While the company’s dividend and value scores are moderate at 2 and 3 respectively, its resilience score of 3 reflects a steady and durable nature. With a widespread presence across various countries including the United States, Canada, and the United Kingdom, WESCO International is well-positioned to serve customers globally. Investors may find confidence in the company’s overall outlook, supported by the favorable Smartkarma Smart Scores highlighting its growth potential and strong momentum in the market.
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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