Wesco Updates 2023 Outlook On EES Results; Stock Falls

(RTTNews) - Wesco International (WCC) said, for 2023, the company is now expecting reported net sales growth of 5%-7% versus 6%-9% prior largely driven by market weakness in certain sectors of the Electrical and Electronic Solutions business unit. EBITDA margins are forecast to be 7.8%-8.0% versus 8.1%-8.4% prior primarily due to the lower sales range. At the mid-point of the guidance range, adjusted EBITDA is approximately $1.8 billion versus $1.9 billion, previously. Earnings per share is now forecast to be $15.00-$16.00. The company's free cash flow guidance is $500-$700 million.

Net income attributable to common stockholders was $178.7 million for the second quarter compared to $206.3 million, prior year. Earnings per share was $3.41, compared to $3.95. Adjusted for items, earnings per share for the second quarter was $3.71. Adjusted earnings per share decreased 11.5% year-over-year. Analysts on average had expected the company to earn $4.05 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Net sales were $5.7 billion for the second quarter compared to $5.5 billion, prior year, an increase of 4.8%. Organic sales grew by 2.8%, for the quarter. Electrical & Electronic Solutions or EES segment organic sales declined by 4.7%.

"Continued strong growth and record sales in our CSS and UBS businesses more than offset a quarterly drop in our EES business that was largely the result of unprecedented supply chain rebalancing in the electrical industry and select weakness in certain sectors including commercial construction and manufactured structures. We're raising our sales synergy target from $1.8 billion to $2.0 billion," said John Engel, Chairman, President and CEO.

Shares of Wesco are down 10% in pre-market trade on Thursday.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.