WESCO International Beats on Both Top and Bottom Lines

WESCO International (NYSE: 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.

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.

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.

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