WESCO INTERNATIONAL Reports Fourth Quarter Earnings for Fiscal Year 2022

Earnings Overview

On February 14 2023, WESCO INTERNATIONAL ($NYSE:WCC) announced its earnings results for the fourth quarter of Fiscal Year 2022, ending December 31 2022. The total revenue reported was USD 218.9 million, a 30.8% increase from the same period the previous year. Net income also rose 14.6%, to USD 5558.5 million.

Transcripts Simplified

WESCO International had a record fourth quarter, with sales up 15% on a reported basis and up 14% organically. Cross-sell synergies contributed more than $260 million of sales in the quarter, and pricing added approximately 6 points to sales growth. Supply chain challenges have continued to impact their business, but demand has continued to be strong. Gross margin was a fourth quarter record at 21.9%, up 110 basis points compared to the prior year.

Adjusted EBITDA was also a fourth quarter record and 41% higher than the prior year, driven by increased gross margin, the scale benefit of higher sales and cost synergies from their merger with Anixter. Adjusted diluted EPS for the quarter was $4.13, up 30% from the prior year.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Wesco International. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Wesco International. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Wesco International. More…

Key Ratios Snapshot

Some of the financial key ratios for Wesco International are shown below. More…

Share Price

The stock opened at $158.8 and closed at $165.7, representing an 8.2% rise from the prior closing price of 153.2. The company’s CEO, John Engel, cited strong execution and growth in most of the company’s markets and product categories as primary drivers for the positive results. In addition to having strong financial results, WESCO INTERNATIONAL reported that it has successfully implemented several new initiatives that are designed to improve customer value and enhance operational efficiency. WESCO INTERNATIONAL is confident that these new initiatives will continue to drive growth and profitability in the coming quarters.

Overall, investors viewed the company’s results favorably, helping WESCO INTERNATIONAL stock to close 8.2% higher than its previous closing price. With this positive quarter and the successful execution of new initiatives, WESCO INTERNATIONAL is well positioned to continue its successful growth trajectory in the future. Live Quote…

Analysis

GoodWhale is here to provide you with an analysis of the financials of WESCO INTERNATIONAL. We have carefully reviewed their financials and assigned them a risk rating of ‘medium’, meaning that their financial and business aspects pose a certain level of risk. We have detected two risk warnings in their balance sheet and cashflow statement that investors should be aware of, and we encourage you to take the time to become a registered user with GoodWhale so that you can review these warnings in detail. We believe that taking the time to understand the risks associated with your investment will help you make more informed decisions in the future. More…

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 reported strong financial results for the fourth quarter of Fiscal Year 2022, with total revenue up 30.8% year-over-year and net income up 14.6%. The company’s stock price reacted positively to the news, rising on the day of the announcement. For investors considering WESCO International, this positive performance is a positive sign, indicating good growth potential and strong financial health. As the economy improves, investors should keep an eye on WESCO International’s performance to assess whether its strong results are sustainable going forward.