WESCO (WCC) Issues '18 Outlook, Announces Share Repurchase

By Zacks Investment ResearchStock MarketsDec 13, 2017 10:31PM ET

www.investing.com/analysis/wesco-wcc-issues-18-outlook-announces-share-repurchase-200273377

WESCO (WCC) Issues '18 Outlook, Announces Share Repurchase

By Zacks Investment Research | Dec 13, 2017 10:31PM ET

Saved. See Saved Items.

This article has already been saved in your Saved Items

INTC

+2.31%

Add to/Remove from Watchlist

NVDA

+3.67%

Add to/Remove from Watchlist

IPGP

-1.42%

Add to/Remove from Watchlist

WCC

+3.73%

Add to/Remove from Watchlist

WESCO International, Inc. (NYSE:WCC) gave an impressive view for 2018. This indicates that the company is benefiting from strength across all end markets and geographic regions.

Moreover, its board of directors authorized a share buyback program, which replaces the similar program ending this year. WESCO will repurchase up to $300 million worth of shares over the next three years.

It reiterated its 2017 guidance. The company continues to expect 2017 sales growth of 3% to 4%, earnings per share in the range of $3.75 to $3.95, and free cash flow generation of at least 90% of net income.

Notably, shares of WESCO have lost 4.2% year to date, slightly better than the industry’s loss of 4.7%.

Guidance for 2018

WESCO foresees favorable market conditions and growth in its end markets in 2018. The company expects sales growth in the range of 3% to 6%, earnings per share in the range of $4.05 to $4.55, and free cash flow generation of at least 90% of net income in 2018.

Operating margin is expected between 4.2% and 4.6%, an improvement of 30 to 50 basis points (bps). Tight discretionary cost controls are also expected to support the outlook.

In addition, WESCO might also benefit from U.S. tax reform proposals, which are currently under consideration. However, the guidance assumes no such impact.

Reasons for the Positive Outlook

Sales to the Utilities market have been improving. Increased investment in upgrade and maintenance of existing infrastructure, as well as the construction of new, contemporary and more automated power plants is a driving factor. Its financial strength, integrated supply capabilities and product range make it an attractive choice for customers.

WESCO’s continuous investment in One WESCO initiative to create extensive supply chain management solutions, by integrating its portfolio of products and services and its supplier relationships, has improved the company’s service capabilities over time and has created considerable synergies across business platforms. One WESCO has managed significant customer wins and is expected to add customers, which in turn will drive revenues.

The company is also expanding in new verticals such as retail, manufacturing, education and healthcare, both in the domestic market and abroad. All these factors are expected to drive its top line.

WESCO International, Inc. Revenue (TTM)

WESCO International, Inc. Revenue (TTM) | WESCO International, Inc. Quote

Share Repurchase Program

WESCO’s share buyback program demonstrates the company’s confidence in its long-term growth outlook and ability to generate strong and consistent free cash flow.

Repurchasing shares will enable WESCO to offset the dilution of EPS and to make opportunistic purchases to support growth.

Zacks Rank & Stocks to Consider

WESCO has a Zacks Rank #2 (Buy).

Intel Corporation (NASDAQ:INTC) , IPG Photonics Corporation (NASDAQ:IPGP) and NVIDIA Corporation (NASDAQ:NVDA) are some of the better-ranked stocks in the broader technology sector. All of them sport a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for Intel, IPG Photonics and NVIDIA is currently projected to be 8.4%, 19.7% and 10.3%, respectively.

Zacks Editor-in-Chief Goes "All In" on This Stock

Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.

Download it free >>

WESCO International, Inc. (WCC): Free Stock Analysis Report

IPG Photonics Corporation (IPGP): Free Stock Analysis Report

Intel Corporation (INTC): Free Stock Analysis Report

NVIDIA Corporation (NVDA): Free Stock Analysis Report

Original post

Zacks Investment Research

Buffett Remains on the Sidelines as Cash Piles Continue to Build By Thomas Hughes - Feb 27, 2025 1

Warren Buffett and Berkshire Hathaway (NYSE:BRKa) always make headlines in February when the firm holds its annual meeting. Among the many takeaways is what the company has been...

Retail Sector Remains Fragile - Should You Sell Rallies? By Michele Schneider - Feb 26, 2025

While Tuesday I wrote about the strength of junk bonds in the face of risk-off ratios (TLT v. SPY, HYG), today, I am still quite concerned about Granny Retail or the consumer...

Nvidia’s 'Better-Than-Expected' Report Fails to Impress - A Telling... By Michael Kramer - Feb 26, 2025 4

Nvidia (NASDAQ:NVDA) shook things up by reporting revenue of $39.3 billion for the quarter while guiding next quarter to $43 billion. This was slightly below the pattern’s...

Add a Comment

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:

Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
Only English comments will be allowed.
Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

I have read Investing.com's comments guidelines and agree to the terms described.

I Agree

Write your thoughts here

Are you sure you want to delete this chart?

Delete Cancel

Post

Post also to:

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.

<div id="comment">
				<div class="comment js-comment" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
    <div class="mainComment js-content">
       <div class="commentInnerWrapper">
        <a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody">
                					<span class="commentUsername">
                    	<a href="{userLink}" class="js-user-link js-user-name">{username}</a>
					</span>
                                <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
                <div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

<div class="js-option addRow follow">
            <div class="js-follow-post-button" data-reg_ep="follow comment">
                <span class="alertfollowIcon middle"></span>Follow this post            </div>
            <div class="js-unfollow-post-button displayNoneImp">
                <span class="alertUnfollowIcon middle"></span>Unfollow this post            </div>
        </div>

<div class="addRow js-option save"  data-reg_ep="save comment">
		<a href="javascript:void(0);" class="js-save-item-btn" data-item-type="comments" data-item-id="{commentID}">
			<i class="saveItemBigIcon middle"></i>
			Save		</a>
	</div>
	<div class="addRow saveItemsConfirmation noHover displayNone js-saveItemResult">
		
<div class="content js-saveItemSuccess displayNone">
	<span class="mediumGreenSuccessIcon"></span><span>Saved. See <a href="/members-admin/saved-items" target="_blank">Saved Items</a>.</span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
<div class="content js-saveItemAlreadySaved saveItemAlreadySaved displayNoneImp">
	<span>This comment has already been saved in your <a href="/members-admin/saved-items" target="_blank">Saved Items</a></span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
	</div>

<div class="addRow shareButtons js-sharePopup displayNone">
			<div class="js-shareComment"><span class="js-shareCommentSpan"></span></div>
		</div>
	</div>
</div>
                 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div>             </div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="commentBigChart js-comment-chart" onclick="openViewChartPopup('{commentID}')">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

<div class="reportComment js-flag float_lang_base_2">
                            <a href="javascript:void(0);" id="commentFlag_{commentID}">
                                <span class="reportCommentIcon middle"></span><span class="inlineblock middle">Report</span>
                            </a>
                        </div>
                    				</div>
					</div>
	   </div>
	</div>
	</div>			</div>
			<div id="reply">
				
    <div class="commentReply js-comment js-comment-reply" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
		<div class="commentInnerWrapper"><a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody js-content">
            				<span class="commentUsername">
					<a href="{userLink}" class="commentUsername js-user-link js-user-name" onMouseOver="">{username}</a>
				</span>
                        <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
			 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div> 			<div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

</div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="replyBigChart displayNone js-comment-chart">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
				<span id="commentSmallChart{commentID}" class="commentSmallChart pointer js-comment-chart" onclick="openViewChartPopup('{commentID}')">
                    <img src="https://d1-invdn-com.investing.com/comments_images/{commentImageSmall}" width="116" height="52" alt="{commentAlt}">
                    <span class="chartMagnifyOverlay displayNone"></span>
                    <span class="searchGlassIcon chartMagnify displayNone"></span>
                </span>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

Are you sure you want to delete this chart?

Delete Cancel

Post

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

I feel that this comment is:

Spam

Offensive

Thank You!

Your report has been sent to our moderators for review

Central Banks

Interest Rates

Next Meeting

FED

4.50%

Mar 19, 2025

ECB

2.90%

Mar 06, 2025

BOE

4.50%

Mar 20, 2025

SNB

0.50%

Mar 20, 2025

RBA

4.10%

Apr 01, 2025

BOC

3.00%

Mar 12, 2025

RBNZ

3.75%

Apr 09, 2025

BOJ

0.50%

Mar 19, 2025

CBR

21.00%

Mar 21, 2025

RBI

6.25%

Mar 10, 2025

PBOC

3.10%

BCB

13.25%

Mar 19, 2025

US 30	43,563.5	+129.2	+0.30%
US 500	5,987.7	+31.5	+0.53%
Dow Jones	43,433.12	-188.04	-0.43%
S&P 500	5,956.06	+0.81	+0.01%
Nasdaq	19,075.26	+48.88	+0.26%
S&P 500 VIX	18.11	-0.99	-5.18%
Dollar Index	106.575	+0.246	+0.23%

Crude Oil WTI	68.97	+0.35	+0.51%
Brent Oil	72.46	+0.39	+0.54%
Natural Gas	3.959	0.000	0.00%
Gold	2,897.30	-33.30	-1.14%
Silver	32.005	-0.267	-0.83%
Copper	4.6010	+0.0145	+0.32%
US Soybeans	1,028.75	+3.75	+0.37%

U.S. 10Y	4.294	+0.045	+1.06%
U.S. 30Y	4.542	+0.035	+0.78%
U.S. 5Y	4.120	+0.043	+1.05%
U.S. 3M	4.317	+0.015	+0.35%
US 10Y T-Note	110.55	-0.30	-0.27%
Euro Bund	132.67	-0.27	-0.20%
10-2 Yield Spread	19.61	-2.98	-13.19%

Apple	240.36	-6.68	-2.70%
Alphabet A	172.73	-2.69	-1.53%
Tesla	290.80	-12.00	-3.96%
Amazon.com	214.35	+1.55	+0.73%
Netflix	990.06	+12.82	+1.31%
Meta Platforms	673.70	+16.20	+2.46%
Bank of America	43.94	0.00	0.00%

WESCO (WCC) Issues '18 Outlook, Announces Share Repurchase

WESCO International, Inc. Revenue (TTM)

Related Articles