Electrical supply company WESCO (NYSE: WCC) will be reporting earnings this Thursday before market open. Here’s what to look for.
WESCO beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $5.9 billion, up 7.7% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ revenue estimates but a miss of analysts’ adjusted operating income estimates.
Is WESCO a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting WESCO’s revenue to grow 7.7% year on year to $5.91 billion, a reversal from the 2.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.83 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. WESCO has missed Wall Street’s revenue estimates twice over the last two years.
Looking at WESCO’s peers in the maintenance and repair distributors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Global Industrial delivered year-on-year revenue growth of 3.3%, missing analysts’ expectations by 1%, and MSC Industrial reported revenues up 2.7%, topping estimates by 1.5%. MSC Industrial traded up 1.1% following the results.
Read our full analysis of Global Industrial’s results here and MSC Industrial’s results here.
There has been positive sentiment among investors in the maintenance and repair distributors segment, with share prices up 3.1% on average over the last month. WESCO is up 4.5% during the same time and is heading into earnings with an average analyst price target of $244.75 (compared to the current share price of $220.77).
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