Overview
Wesco Q3 revenue grows 12.9% yr/yr, beating analyst expectations
Adjusted EPS for Q3 beats consensus, reflecting improved operational performance
Company raises full-year outlook for sales growth, adjusted EBITDA, and adjusted EPS
Outlook
Wesco raises full-year organic sales growth forecast to 8%-9% from 5%-7%
Company expects full-year adjusted EPS between $13.10 and $13.60
Wesco lowers full-year free cash flow outlook due to increased working capital needs
Result Drivers
DATA CENTER SALES - Data center sales reached $1.2 bln, up ~60% YOY, significantly contributing to revenue growth
ORGANIC SALES GROWTH - Organic sales grew 12.1% YOY, driven by volume growth in CSS, EES, and UBS segments
UTILITY SECTOR RECOVERY - Utility business returned to growth, contributing to overall sales increase
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $6.20 bln | $5.90 bln (9 Analysts) |
Q3 Adjusted EPS | Beat | $3.92 | $3.80 (10 Analysts) |
Q3 EPS | $3.79 | ||
Q3 EBIT Margin | 5.60% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electrical components & equipment peer group is "buy"
Wall Street's median 12-month price target for Wesco International Inc is $250.00, about 8.7% above its October 29 closing price of $228.29
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 13 three months ago
Press Release: ID:nPn1dQ3t7a
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)