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Wesco International’s (NYSE:WCC) stock dropped as much as 31% Tuesday to a four-month low after the distributor of industrial goods reported earnings that were weaker than expected in the fourth quarter.
The company's earnings were $2.45 a share in the three months ended December 31, down from $3.90 a share in the comparable period a year earlier.
Adjusted earnings were $2.65 a share, missing the average estimate among Wall Street analysts for $3.87 a share.
Revenue slipped 1.8% from a year earlier to $5.47 billion, compared with the consensus estimate of $5.59 billion.
"The fourth quarter was disappointing as our stock and flow sales were below our expectations and we saw delays in certain projects that were anticipated to ship in December," John Engel, chairman, president and chief executive of Wesco (WCC), said in a statement. "Fourth quarter sales declined by 2%, noting the strong 2022 base period with sales up 15%. That said, our quoting and bid levels were very healthy during the fourth quarter, with total backlog stable compared to the end of September."
For 2024, management forecast sales growth of 1% to 4% and an adjusted earnings before interest, taxes, depreciation and amortization margin of 7.5% to 7.9%. The company also forecast free cash flow of $600 million to $800 million.
Wesco’s (WCC) stock on Friday had closed at an all-time high of $193.83 a share.
