WESCO International, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
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Investors in WESCO International, Inc. (NYSE:WCC) had a good week, as its shares rose 6.9% to close at US$188 following the release of its quarterly results. It looks like a credible result overall - although revenues of US$5.5b were what the analysts expected, WESCO International surprised by delivering a (statutory) profit of US$3.81 per share, an impressive 23% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for WESCO International
Taking into account the latest results, the current consensus from WESCO International's 13 analysts is for revenues of US$22.4b in 2025. This would reflect a credible 2.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 12% to US$14.57. In the lead-up to this report, the analysts had been modelling revenues of US$22.4b and earnings per share (EPS) of US$14.71 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The consensus price target rose 5.5% to US$210despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of WESCO International's earnings by assigning a price premium. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values WESCO International at US$230 per share, while the most bearish prices it at US$190. This is a very narrow spread of estimates, implying either that WESCO International is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that WESCO International's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.3% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.4% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than WESCO International.