WESCO INTERNATIONAL Reports 4.8% Increase in Revenue, But 12.5% Drop in Net Income for Q2 FY2023
August 15, 2023
🌧️Earnings Overview
WESCO INTERNATIONAL ($NYSE:WCC) reported total revenue of USD 5745.5 million for the second quarter of FY2023, a 4.8% increase from the same period in the previous year. However, net income declined 12.5%, to USD 193.1 million, when compared to the second quarter of FY2022. The earnings results were released on June 30th 2023.
Analysis
GoodWhale conducted a comprehensive analysis of WESCO INTERNATIONAL‘s fundamentals to provide an assessment of its investment risk. Upon evaluation, GoodWhale gave WESCO INTERNATIONAL a rating of medium risk. This rating indicates that there are some risks associated with investing in the company, but that these risks may be manageable with the right financial strategy and knowledge. GoodWhale also detected two risk warnings in the company’s balance sheet and cash flow statements. These warnings are accessible to registered users who wish to delve deeper into the company’s financials. With the proper understanding of the risks involved, WESCO INTERNATIONAL could be a strong investment opportunity. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Wesco International. More…
| Total Revenues | Net Income | Net Margin |
| 22.27k | 791.32 | 3.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Wesco International. More…
| Operations | Investing | Financing |
| 377.77 | -296.31 | 223.14 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Wesco International. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 15.16k | 10.36k | 93.62 |
Key Ratios Snapshot
Some of the financial key ratios for Wesco International are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 38.9% | 80.6% | 6.7% |
| FCF Margin | ROE | ROA |
| 1.2% | 19.8% | 6.1% |
Peers
The Company’s primary competitors are Fastenal Co, MSC Industrial Direct Co Inc, and Addtech AB.
– Fastenal Co ($NASDAQ:FAST)
The company’s market cap is $27.97B as of 2022 and its ROE is 28.04%. The company is engaged in the distribution of industrial and construction supplies.
– MSC Industrial Direct Co Inc ($NYSE:MSM)
MSC Industrial Direct Co, Inc. engages in the distribution of metalworking and maintenance, repair, and operations (MRO) products and services. It operates through the following segments: Metalworking Solutions Group, MRO Solutions Group, and Fluid Power & Automation Solutions Group. The Metalworking Solutions Group segment offers cutting tools, measuring instruments, tooling components, abrasives, and machine tools. The MRO Solutions Group segment comprises of products used to maintain, repair, and operate facilities and equipment. The Fluid Power & Automation Solutions Group segment provides fluid power components and systems, and automation and control products. The company was founded by Martin Schwartz in 1941 and is headquartered in Melville, NY.
MSC Industrial Direct Co Inc has a market cap of 4.71B as of 2022 and a Return on Equity of 22.14%. The company engages in the distribution of metalworking and maintenance, repair, and operations (MRO) products and services. It operates through the following segments: Metalworking Solutions Group, MRO Solutions Group, and Fluid Power & Automation Solutions Group. The Metalworking Solutions Group segment offers cutting tools, measuring instruments, tooling components, abrasives, and machine tools. The MRO Solutions Group segment comprises of products used to maintain, repair, and operate facilities and equipment. The Fluid Power & Automation Solutions Group segment provides fluid power components and systems, and automation and control products.
– Addtech AB ($LTS:0QI7)
Addtech AB is a Swedish company that provides technology solutions for industrial customers. The company has a market cap of 36 billion as of 2022 and a return on equity of 28.17%. Addtech’s solutions include products and services for automation, motion control, and fluid power. The company operates in four segments: Automation, Motion, Fluid Power, and Industrial Supplies. Addtech employs approximately 3,700 people and has sales offices in Europe, North America, and Asia.
Summary
WESCO International recently reported its second quarter of FY2023 earnings results, with total revenue increasing 4.8% to USD 5745.5 million and net income decreasing 12.5% to USD 193.1 million. Although revenue was higher than the prior year, investors remain cautious as net income dropped sharply. Many analysts are divided on the stock and its potential to recover, but it is clear that the market is taking a wait-and-see approach before making any significant changes to their investment strategies.
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