Financial News
WESCO Earnings: What To Look For From WCC
Electrical supply company WESCO (NYSE:WCC) will be announcing earnings results tomorrow before market hours. Here’s what to look for.
WESCO missed analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $5.48 billion, down 4.6% year on year. It was a disappointing quarter for the company, with a miss of analysts’ operating margin estimates.
Is WESCO a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting WESCO’s revenue to decline 3.2% year on year to $5.46 billion, a reversal from the 3.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.25 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. WESCO has missed Wall Street’s revenue estimates four times over the last two years.
Looking at WESCO’s peers in the maintenance and repair distributors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Fastenal delivered year-on-year revenue growth of 3.5%, meeting analysts’ expectations, and MSC Industrial reported a revenue decline of 8%, in line with consensus estimates. Fastenal traded up 9.6% following the results while MSC Industrial was down 2.6%.
Read our full analysis of Fastenal’s results here and MSC Industrial’s results here.
Investors in the maintenance and repair distributors segment have had steady hands going into earnings, with share prices flat over the last month. WESCO is up 6.8% during the same time and is heading into earnings with an average analyst price target of $199.34 (compared to the current share price of $177.82).
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