Shares of Wesco International Inc (WCC) plummeted 5.84% in Thursday's trading session following the release of the company's first-quarter 2025 earnings report. The industrial distribution and services company reported adjusted earnings that fell short of analyst expectations, despite a slight beat on revenue.

Wesco announced first-quarter adjusted earnings of $2.21 per diluted share, down from $2.30 a year earlier and below the $2.32 per share analysts had forecast. Revenue for the quarter ended March 31 came in at $5.34 billion, marginally beating the estimated $5.26 billion but still showing a slight decrease from $5.35 billion in the same period last year. The company's gross margin declined to 21.1%, down 10 basis points sequentially and 20 basis points year-over-year.

Despite the market's negative reaction, Wesco reaffirmed its full-year 2025 outlook, citing positive momentum from the first four months of the year. The company highlighted strong growth in certain sectors, with data center sales surging by 70%. Additionally, Wesco reported an increase in organic sales of 5.6% after adjusting for various factors, and plans to redeem preferred stock in June using proceeds from financing completed during the first quarter. These factors, along with growth trends in AI-driven data centers, power generation, electrification, automation, and reshoring, may provide some optimism for the company's future performance.