WESCO International Earnings: Investors Support Solid Execution

WESCO International Inc. (NYSE:WCC) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. Shares are up 0.87%.

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WESCO International Inc. Earnings Cheat Sheet

Results: Net income decreased -11.39% to $48.6 million ($1.06 per diluted share) in the quarter versus a net gain of $54.85 million in the year-earlier quarter.

Revenue: Rose 3.18% to $1.64 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: WESCO International Inc. reported adjusted net income of $1.06 per share. By that measure, the company missed the mean analyst estimate of $1.08. It missed the average revenue estimate of $1.65 billion.

Quoting Management: Mr. John J. Engel, WESCO’s Chairman and Chief Executive Officer, stated, “Our fourth quarter results reflect solid execution in a challenging economic environment and a continuation of the market trends experienced in the third quarter.  We continued to see the positive impact of our productivity and LEAN initiatives in gross margins, operating costs, and free cash flow, excluding the non-recurring acquisition and debt extinguishment costs.  In addition, we were pleased to complete the acquisition of EECOL Electric in mid-December, which strengthens our Canadian operations and establishes a solid foundation for WESCO in South America…

…On a full year basis, operating margins reached 5.6%, up 20 basis points versus prior year, as sales grew 7.4% to a record $6.6 billion.  As a result, earnings per share grew at a double-digit rate again last year.  2012 included many noteworthy accomplishments, and I am very proud of the extra effort and results delivered by all our associates around the globe working together as the One WESCO team.”

Key Stats:

Revenue decreased 0.98% from $1.66 billion in the previous quarter. Net income decreased 23.37% from $63.42 million in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.11 to a profit $1.28. For the current year, the average estimate has moved down from a profit of $4.53 to a profit of $4.52 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)