WESCO International (NYSE:WCC) Shares Gap Down on Disappointing Earnings

WESCO International, Inc. (NYSE:WCC)’s stock price gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $174.95, but opened at $161.79. WESCO International shares last traded at $166.18, with a volume of 135,466 shares changing hands.

The technology company reported $3.21 earnings per share for the quarter, missing the consensus estimate of $3.48 by ($0.27). The business had revenue of $5.48 billion during the quarter, compared to analysts’ expectations of $5.55 billion. WESCO International had a return on equity of 14.44% and a net margin of 3.30%. WESCO International’s revenue for the quarter was down 4.6% on a year-over-year basis. During the same quarter in the previous year, the business earned $3.71 EPS.

WESCO International Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, June 28th. Stockholders of record on Friday, June 14th were paid a $0.4125 dividend. The ex-dividend date of this dividend was Friday, June 14th. This represents a $1.65 annualized dividend and a dividend yield of 1.08%. WESCO International’s payout ratio is 13.74%.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on WCC shares. Robert W. Baird reduced their price objective on shares of WESCO International from $195.00 to $172.00 and set a “neutral” rating for the company in a research note on Friday. Baird R W cut shares of WESCO International from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 29th. KeyCorp reduced their price objective on shares of WESCO International from $205.00 to $195.00 and set an “overweight” rating for the company in a research note on Friday. Royal Bank of Canada reduced their price objective on shares of WESCO International from $175.00 to $171.00 and set a “sector perform” rating for the company in a research note on Friday. Finally, Oppenheimer boosted their price objective on shares of WESCO International from $190.00 to $200.00 and gave the company an “outperform” rating in a research note on Friday, May 3rd. Four investment analysts have rated the stock with a hold rating and four have issued a buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $185.50.

Insiders Place Their Bets

In other WESCO International news, CAO Matthew S. Kulasa sold 474 shares of the business’s stock in a transaction that occurred on Friday, May 24th. The shares were sold at an average price of $191.69, for a total value of $90,861.06. Following the completion of the transaction, the chief accounting officer now owns 3,555 shares of the company’s stock, valued at approximately $681,457.95. The transaction was disclosed in a filing with the SEC, which is available through this link. In other news, EVP Christine Ann Wolf sold 4,486 shares of the business’s stock in a transaction that occurred on Friday, May 24th. The shares were sold at an average price of $190.13, for a total value of $852,923.18. Following the completion of the sale, the executive vice president now directly owns 30,304 shares in the company, valued at approximately $5,761,699.52. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CAO Matthew S. Kulasa sold 474 shares of the business’s stock in a transaction that occurred on Friday, May 24th. The stock was sold at an average price of $191.69, for a total transaction of $90,861.06. Following the completion of the sale, the chief accounting officer now owns 3,555 shares of the company’s stock, valued at $681,457.95. The disclosure for this sale can be found here. Insiders sold a total of 1,754,960 shares of company stock valued at $303,728,784 in the last quarter. Corporate insiders own 3.10% of the company’s stock.

Institutional Investors Weigh In On WESCO International

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Van ECK Associates Corp raised its holdings in WESCO International by 11.9% during the 2nd quarter. Van ECK Associates Corp now owns 12,993 shares of the technology company’s stock valued at $2,060,000 after buying an additional 1,378 shares during the last quarter. Innealta Capital LLC bought a new stake in WESCO International during the 2nd quarter valued at $152,000. Whittier Trust Co. of Nevada Inc. raised its holdings in WESCO International by 71.1% during the 2nd quarter. Whittier Trust Co. of Nevada Inc. now owns 166 shares of the technology company’s stock valued at $26,000 after buying an additional 69 shares during the last quarter. Bank of New York Mellon Corp raised its holdings in WESCO International by 2.1% during the 2nd quarter. Bank of New York Mellon Corp now owns 413,156 shares of the technology company’s stock valued at $65,494,000 after buying an additional 8,641 shares during the last quarter. Finally, Fifth Third Wealth Advisors LLC bought a new stake in WESCO International during the 2nd quarter valued at $676,000. 93.76% of the stock is currently owned by institutional investors.

WESCO International Stock Down 3.3 %

The stock’s fifty day moving average is $168.53 and its 200 day moving average is $167.20. The company has a current ratio of 2.28, a quick ratio of 1.33 and a debt-to-equity ratio of 1.07. The company has a market capitalization of $7.80 billion, a P/E ratio of 12.78, a price-to-earnings-growth ratio of 1.27 and a beta of 2.06.

About WESCO International

WESCO International, Inc provides business-to-business distribution, logistics services, and supply chain solutions in the United States, Canada, and internationally. It operates through three segments: Electrical & Electronic Solutions (EES), Communications & Security Solutions (CSS), and Utility and Broadband Solutions (UBS).