The 10-second takeaway
For the quarter ended Dec. 31 (Q4), WESCO International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and earnings per share increased significantly.
Gross margins increased, operating margins dropped, and net margins grew.
WESCO International tallied revenue of $1.59 billion. The 13 analysts polled by S&P Capital IQ anticipated revenue of $1.53 billion. Sales were 19% higher than the prior-year quarter's $1.33 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $1.12. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.97 per share. GAAP EPS of $1.12 for Q4 were 57% higher than the prior-year quarter's $0.71 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 20.6%, 30 basis points better than the prior-year quarter. Operating margin was 5.8%, 50 basis points worse than the prior-year quarter. Net margin was 3.4%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.52 billion. On the bottom line, the average EPS estimate is $0.90.
Next year's average estimate for revenue is $6.49 billion. The average EPS estimate is $4.40.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on WESCO International is buy, with an average price target of $57.25.
Over the decades, small-cap stocks like WESCO International have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add WESCO International to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.