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Will WESCO (WCC) Beat Estimates this Earnings Season?
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WESCO International Inc. (WCC), is likely to beat expectations when it reports second-quarter 2016 results on Jul 28. The company is a leading provider of electrical, industrial, and communications maintenance, repair and operating (MRO) and original equipment manufacturers (OEM) products, construction materials, and advanced supply chain management and logistic services.
Our proven model shows that WESCO has a reasonable chance of beating estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. WESCO has the right combination of the two key components.
Zacks ESP: WESCO currently has an Earnings ESP of +2.06%. This is because the Most Accurate estimate stands at 99 cents, while the Zacks Consensus Estimate is pegged lower at 97 cents.
Zacks Rank: WESCO carries a Zacks Rank #3, which when combined with an ESP of +2.06% make us reasonably confident of a positive surprise.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
What is Driving The Company’s Business?
WESCO reported decent first quarter results with earnings and revenues surpassing the respective Zacks Consensus Estimate.
The company continued to implement its One WESCO strategy to boost sales, enhance profitability, generate strong cash flow and enhance shareholder’s value.
WESCO offers a comprehensive portfolio of products and services to meet OEM, MRO and capital project management requirements of customers assuming the role of a sone-stop shop in a highly fragmented market.
Management is hopeful about continued acquisitions and product and service expansions, leveraging its strong free cash flow.
However, WESCO anticipates weak demand from builders, manufacturers and other industrial customers this year. Foreign exchange will also be a negative for profits this year.
Other Stocks to Consider
Here are other some stocks, which you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Open Text Corp. (OTEX - Free Report) with an Earnings ESP of +1.10% and Zacks Rank #1.
Silicon Motion Technology Corp. (SIMO - Free Report) with an Earnings ESP of +18.84% and Zacks Rank #1.
Intel Corporation (INTC - Free Report) with an Earnings ESP of +1.52% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Will WESCO (WCC) Beat Estimates this Earnings Season?
WESCO International Inc. (WCC), is likely to beat expectations when it reports second-quarter 2016 results on Jul 28. The company is a leading provider of electrical, industrial, and communications maintenance, repair and operating (MRO) and original equipment manufacturers (OEM) products, construction materials, and advanced supply chain management and logistic services.
WESCO INTL INC Price and EPS Surprise
WESCO INTL INC Price and EPS Surprise | WESCO INTL INC Quote
Why a Likely Positive Surprise?
Our proven model shows that WESCO has a reasonable chance of beating estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. WESCO has the right combination of the two key components.
Zacks ESP: WESCO currently has an Earnings ESP of +2.06%. This is because the Most Accurate estimate stands at 99 cents, while the Zacks Consensus Estimate is pegged lower at 97 cents.
Zacks Rank: WESCO carries a Zacks Rank #3, which when combined with an ESP of +2.06% make us reasonably confident of a positive surprise.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
What is Driving The Company’s Business?
WESCO reported decent first quarter results with earnings and revenues surpassing the respective Zacks Consensus Estimate.
The company continued to implement its One WESCO strategy to boost sales, enhance profitability, generate strong cash flow and enhance shareholder’s value.
WESCO offers a comprehensive portfolio of products and services to meet OEM, MRO and capital project management requirements of customers assuming the role of a sone-stop shop in a highly fragmented market.
Management is hopeful about continued acquisitions and product and service expansions, leveraging its strong free cash flow.
However, WESCO anticipates weak demand from builders, manufacturers and other industrial customers this year. Foreign exchange will also be a negative for profits this year.
Other Stocks to Consider
Here are other some stocks, which you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Open Text Corp. (OTEX - Free Report) with an Earnings ESP of +1.10% and Zacks Rank #1.
Silicon Motion Technology Corp. (SIMO - Free Report) with an Earnings ESP of +18.84% and Zacks Rank #1.
Intel Corporation (INTC - Free Report) with an Earnings ESP of +1.52% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>