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WESCO's (WCC) Q3 Earnings and Revenues Surpass Estimates
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WESCO International, Inc. (WCC - Free Report) reported third-quarter 2020 adjusted earnings of $1.66 per share, which reflects a 9.2% year-over-year increase. Also, the bottom line surpassed the Zacks Consensus Estimate of $1.37 per share.
The company reported quarterly net sales of $4.14 billion, up 93% year over year. The increase was due to its merger with Anixter that was completed on Jun 22, 2020, partially offset by the COVID-19 pandemic.
Also, the figure surpassed the Zacks Consensus Estimate by 1.6%.
Top-Line Details
During the third quarter, the company organized the business into three strategic business units, namely, Electrical & Electronic Solutions (EES), Communications & Security Solutions (CSS) and Utility & Broadband Solutions (UBS).
EES: Revenues in this segment were $1.7 billion for the third quarter, up 32.3% from the year-ago period.
CSS: Revenues in this segment were $1.4 billion for the third quarter, up 488.7% from the year-ago period.
UBS: Revenues in this segment were $1.1 billion for the third quarter, up 66% from the year-ago period.
WESCO International, Inc. Price, Consensus and EPS Surprise
Gross margin was 19.6% for the reported quarter, which expanded 100 basis points (bps) from the year-ago period.
Adjusted selling, general and administrative expenses were $567.6 million, or 13.7% of net sales for the third quarter.
WESCO’s adjusted operating margin came in at 4.8%, which expanded 40 bps from the prior-year quarter due to higher sales.
Balance Sheet & Cash Flow
At third quarter-end, cash & cash equivalents were $352.2 million, up from $265.2 million in the prior-year comparable period. Net long-term debt for third-quarter 2020 was $4.9 billion, down $280 million from the prior-year period.
WESCO generated $286.3 million of cash from operations and $307.4 million in free cash flow for the reported quarter.
Long-term earnings growth for Marchex, Overstock.com, and Revolve Group is currently projected at 15%, 20% and 17.3%, respectively.
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WESCO's (WCC) Q3 Earnings and Revenues Surpass Estimates
WESCO International, Inc. (WCC - Free Report) reported third-quarter 2020 adjusted earnings of $1.66 per share, which reflects a 9.2% year-over-year increase. Also, the bottom line surpassed the Zacks Consensus Estimate of $1.37 per share.
The company reported quarterly net sales of $4.14 billion, up 93% year over year. The increase was due to its merger with Anixter that was completed on Jun 22, 2020, partially offset by the COVID-19 pandemic.
Also, the figure surpassed the Zacks Consensus Estimate by 1.6%.
Top-Line Details
During the third quarter, the company organized the business into three strategic business units, namely, Electrical & Electronic Solutions (EES), Communications & Security Solutions (CSS) and Utility & Broadband Solutions (UBS).
EES: Revenues in this segment were $1.7 billion for the third quarter, up 32.3% from the year-ago period.
CSS: Revenues in this segment were $1.4 billion for the third quarter, up 488.7% from the year-ago period.
UBS: Revenues in this segment were $1.1 billion for the third quarter, up 66% from the year-ago period.
WESCO International, Inc. Price, Consensus and EPS Surprise
WESCO International, Inc. price-consensus-eps-surprise-chart | WESCO International, Inc. Quote
Operating Details
Gross margin was 19.6% for the reported quarter, which expanded 100 basis points (bps) from the year-ago period.
Adjusted selling, general and administrative expenses were $567.6 million, or 13.7% of net sales for the third quarter.
WESCO’s adjusted operating margin came in at 4.8%, which expanded 40 bps from the prior-year quarter due to higher sales.
Balance Sheet & Cash Flow
At third quarter-end, cash & cash equivalents were $352.2 million, up from $265.2 million in the prior-year comparable period. Net long-term debt for third-quarter 2020 was $4.9 billion, down $280 million from the prior-year period.
WESCO generated $286.3 million of cash from operations and $307.4 million in free cash flow for the reported quarter.
Zacks Rank & Other Key Picks
WESCO currently has a Zacks Rank #2 (Buy). Other top-ranked stocks in the broader technology sector include Marchex, Inc. (MCHX - Free Report) , Overstock.com, Inc. and Revolve Group, Inc. (RVLV - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Marchex, Overstock.com, and Revolve Group is currently projected at 15%, 20% and 17.3%, respectively.
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The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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