WESCO Holding Its Position

WESCO International, Inc. (WCC - Analyst Report) is one of the largest distributors of electrical products in the U.S. Both revenue and EPS exceeded consensus estimates in the last quarter. All the end markets continue to look challenging in 2008, and 2009 is likely to be worse.

However, management initiatives could limit the downward pressure. We expect revenue to grow less than 3% in 2008, after four years of double-digit growth.

We are reiterating our Hold rating on WCC shares. While management's experience and initiatives should ensure slightly higher growth rates than the industry, it will have to balance the cost of these initiatives versus revenue growth in order to minimize the margin pressure.

Sejuti Benerjea contributed to this report.

Read the full analyst report on WCC

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