WESCO INTERNATIONAL Reports Q4 FY2022 Earnings Results Nearly a Year Later on February 14 2023.
April 3, 2023
Earnings Overview
WESCO INTERNATIONAL ($NYSE:WCC) reported their FY2022 Q4 earnings results on February 14 2023, with total revenue up 30.8% year over year to USD 218.9 million, and a 14.6% rise in net income to USD 5558.5 million compared to December 31 2022.
Transcripts Simplified
WESCO International reported record fourth quarter results, with sales up 15% year-over-year. Cross-sell initiatives contributed $260 million of sales in the quarter. On an organic basis, sales were up 14%, driven by strong price and volume, along with share gains. Supply chain challenges have continued to impact the business. Backlog was up 44% year-over-year, and preliminary reported January results showed sales up 17%.
Gross margin was a fourth quarter record at 21.9%, up 110 basis points versus the prior year. Adjusted EBITDA was a fourth quarter record and 41% higher than the prior year. Adjusted diluted EPS was $4.13, also a fourth quarter record and 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…
| Total Revenues | Net Income | Net Margin |
| 21.42k | 803.06 | 4.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Wesco International. More…
| Operations | Investing | Financing |
| 11.04 | -283.57 | 584.03 |
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 |
| 14.81k | 10.36k | 87.75 |
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 |
| 36.8% | 60.7% | 6.7% |
| FCF Margin | ROE | ROA |
| -0.4% | 20.8% | 6.1% |
Price History
The stock opened at $158.8 and closed at $165.7, a 8.2% increase from the prior closing price of 153.2. Overall, WESCO INTERNATIONAL had a successful fourth quarter of FY2022, showing an increase in net income, revenue, and assets, as well as a decrease in their total liabilities. Live Quote…
Analysis
At GoodWhale, we have analyzed the fundamentals of WESCO INTERNATIONAL and provided a Risk Rating. We have determined that it is a medium-risk investment in terms of financial and business aspects. Our analysis has shown two risk warnings in the balance sheet and cashflow statement. If you would like to further investigate these warnings, please become a registered user of GoodWhale. We will provide you with detailed insights into the risks associated with WESCO INTERNATIONAL’s current financial and business situation. With GoodWhale, you can make informed decisions on your investments, so you can invest with confidence. More…
Peers
The Company’s primary competitors are Fastenal Co, MSC Industrial Direct Co Inc, and Addtech AB.
– Fastenal Co ($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 earnings results for the fourth quarter of FY2022 on February 14 2023. Total revenue increased by 30.8%, while net income rose 14.6% year-over-year. This resulted in a positive response from the market, and the stock price moved up accordingly. Investing in WESCO International looks promising, with strong revenue and income growth potential.
Given the company’s solid financial performance, long-term investors may consider adding it to their portfolios. With the right strategy, WESCO International could be an attractive option for generating returns.
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