Wesco International Gains on Higher 2Q Results, Boost to Fiscal-Year Outlook

Dow Jones07-31
 
 

Shares of Wesco International climbed after the provider of global supply-chain solutions reported an increase in second-quarter revenue and profit and lifted its guidance for the fiscal year.

The stock was up nearly 11%, to $343.54, midday Thursday, and has risen 40% since the start of the year.

Wesco posted net income of $209 million, or $4.23 a share, compared with $189.2 million, or $3.83 a share, a year earlier.

Adjusted earnings per share were $4.57. Analysts polled by FactSet expected $3.98.

Revenue rose 13%, to $6.67 billion, driven by volume growth across all segments and favorable effects from price changes. Analysts polled by FactSet expected $6.44 billion.

The company's backlog increased 60% year-over-year.

Wesco also raised its fiscal-year 2026 outlook to reflect the favorable secular growth trends, it said.

The Pittsburgh company projected fiscal 2026 sales between $25.9 billion and $26.3 billion, up from its previous guidance of between $24.9 billion and $25.6 billion. It also projected adjusted earnings per share between $16.00 and $17.00, an increase from its previous guidance of between $15.00 and $17.00. Analysts polled by FactSet expected adjusted earnings of $16.08 a share on sales of $25.49 billion.

Wesco projected sales to be higher by low-double digits in its third quarter and adjusted earnings before interest, taxes, depreciation and amortization to be slightly lower sequentially.

Chief Executive John Engel said the company has posted four consecutive quarters of double-digit sales growth fueled by data centers. He added that demand remained strong across the rest of its portfolio and end markets as customers continue to invest in major infrastructure projects.

 
 

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