WESCO International Beats on Both Top and Bottom Lines

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WESCO International (NYS: WCC) reported earnings on April 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), WESCO International beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.


Gross margins dropped, operating margins increased, net margins improved.

Revenue details
WESCO International reported revenue of $1.61 billion. The 13 analysts polled by S&P Capital IQ looked for sales of $1.58 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $1.43 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.03. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.96 per share. GAAP EPS of $1.03 for Q1 were 39% higher than the prior-year quarter's $0.74 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 19.9%, 10 basis points worse than the prior-year quarter. Operating margin was 5.2%, 70 basis points better than the prior-year quarter. Net margin was 3.3%, 70 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.67 billion. On the bottom line, the average EPS estimate is $1.20.

Next year's average estimate for revenue is $6.70 billion. The average EPS estimate is $4.70.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on WESCO International is buy, with an average price target of $71.44.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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