WESCO misses top-line and bottom-line estimates; initiates FY24 outlook

• WESCO press release (NYSE:WCC): Q4 Non-GAAP EPS of $2.65 misses by $1.22.
• Revenue of $5.5B (-1.8% Y/Y) misses by $80M.
• Adjusted EBITDA margin of 7.0%, down 110 basis points sequentially and Y/Y.
• Effectively managing financial leverage and revising target range to 1.5x-2.5x.
• 2024 outlook is for sales growth of 1% to 4% and adjusted EBITDA margin of 7.5% to 7.9%
  • Free cash flow of $600 - $800 million.

More on WESCO

• WCC-A: YTC Says Holding Okay, Adding A No Thanks
• WESCO International: Growth Should Moderate In The Near Term
• WESCO: Executing Well, But Upside In The Short-Term Could Be Capped
• Seeking Alpha’s Quant Rating on WESCO

Comments

[Mktneutralhedger]

Nobody saw this coming. I heard of some hedge fund managers with a target of $243 based on a conservative 9 times 2025 ebitda. Terrible awakening.

[Charles M.]

New construction has slowed down tremendously in Northern Cal. Freeway billboards for new home subdivisions are all over the place. Private home for sale signs have increased in peoples yards. Modular home subdivision that has been finished for over a year has signs saying huge discounts. Sales to commercial distributors has slowed, I suspect due to slower moving inventory and not needing to be replaced.