WESCO International Reports Record-Breaking Quarter with Non-GAAP EPS of $3.75 and Revenue of $5.5B

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WESCO ($NYSE:WCC) International Inc. recently reported their record-breaking quarter, with Non-GAAP EPS of $3.75 and Revenue of $5.5B. This was a significant jump from the prior quarter, with an impressive $0.17 more than analysts expected for the EPS and $50M more than predicted for the revenue. The company offers a comprehensive portfolio of products and services across a range of industries, including commercial and industrial, transportation, digital infrastructure, healthcare, retail, education, and more. WESCO is committed to providing the highest quality products and services to its customers and partners, backed by their experienced team of professionals who strive for excellence on a daily basis.

WESCO is focused on delivering innovative solutions that allow customers to maximize their supply chain efficiencies. WESCO is well positioned to continue delivering outstanding results in the years to come with its long-standing commitment to quality and customer service.

Earnings

Compared to the same quarter a year ago, this represents a 14.6% increase in total revenue and a 30.8% increase in net income. WESCO INTERNATIONAL‘s impressive results demonstrate their commitment to delivering value to their shareholders.

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…

Price History

Despite this impressive performance, the company’s stock price opened at $125.4 and closed at $122.9, a plunge of 14.7% from the previous closing price of 144.1. The strong results were attributed to the company’s focus on cost savings initiatives, improved efficiency and effective pricing strategies, which have driven strong organic growth and enabled it to gain market share in its core markets. Live Quote…

Analysis

GoodWhale has conducted an analysis of WESCO INTERNATIONAL‘s fundamentals and found that it has a high health score of 8/10 with regard to its cashflows and debt, indicating that the company is capable of safely riding out any crisis without the risk of bankruptcy. On the Star Chart, WESCO INTERNATIONAL is strong in growth, medium in asset, profitability and weak in dividend. We classify WESCO INTERNATIONAL as a ‘cheetah’, a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Such a company may be of interest to investors who are looking for high-growth potential but are comfortable with a lower level of stability. These investors may be willing to accept higher levels of volatility and risk in order to benefit from the potential upside of these companies. Additionally, investors who are interested in diversifying their portfolios may find WESCO INTERNATIONAL an attractive option given its potential for high returns on investment. 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

Revenue of $5.5 billion also beat estimates by $50 million. Despite these impressive results, the stock price dropped that same day. Investors were likely concerned by management’s guidance that the company expects earnings to be flat in the coming quarter compared to the same period last year.

It appears investors are not confident that WESCO will be able to maintain their current level of success in the face of increased competition and a sluggish global economy. Longer-term investors may want to consider buying WESCO for its strong balance sheet and steady revenue growth, as well as its dividend yield of 6%.