WESCO International, Inc. WCC recently announced changes at the management level with the appointment of Matthew J. Espeto its board. The appointment will be effective Nov 1, 2016.
In his illustrious career, Espe served in high financial capacities at reputed organizations. From Jul 2010 to Mar 2016, he was a chief executive officer (CEO) and President of Armstrong World Industries, Inc. Before that he served as a chairman and CEO of Ricoh Americas for two years. Also, he had earlier served as a chairman and CEO at IKON Office Solutions, Inc. for almost six years.
Management believes that Espe’s experience in sales and marketing and his solid leadership will be instrumental in the company’s long-term goal achievement.
John J. Engel, WESCO's Chairman of the Board, said, “I am pleased to announce the appointment of Matthew J. Espeas the member of the WESCO Board of Directors.” The company is looking forward to benefiting from the joining of Espe, who is a seasoned public company CEO and successful global business leader with sales and marketing expertise and executive leadership experience in multiple industries.
Recent Results & Looking Ahead
WESCO reported encouraging second-quarter results with earnings and revenues surpassing the respective Zacks Consensus Estimate. Earnings of $1.02 beat the Zacks Consensus Estimate by 5.15% or 5 cents. Also, earnings increased 38.3% sequentially and 4.9% year over year. Revenues of $1.9 billion increased 7.6% sequentially but declined 0.3% year over year.
For the third quarter, management expects sales to be flat to down 3%. Operating margin is expected within 4.9% to 5.3%, with an effective tax rate of approximately 29%.
For 2016, the company narrowed its sales outlook to flat to down 2%, and expects earnings per share in the $3.85 to $4.10 range. The company targets increasing its free cash flow to at least 100% of net income.
The company is expected to report third-quarter 2016 results on Oct 27.
WESCO International is one of the major distributors of electrical products in the U.S.
The company emphasizes providing a comprehensive portfolio of products and services and capital project management requirements of customers. It continues to implement its One WESCO strategy to boost sales, enhance profitability, generate strong cash flow and enhance shareholders’ value.
However, management anticipates weakness in commodity-driven end markets. The company also stated that profits may remain under pressure throughout 2016 due to foreign exchange headwinds.
Stocks to Consider
Currently, WESCO has a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader technology sector are Silicon Laboratories Inc. SLAB, sporting a Zacks Rank #1 (Strong Buy), and Analog Devices, Inc. ADI and Inphi Corporation IPHI, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
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