Latest news with #WESCOInternational
Yahoo
4 hours ago
- Business
- Yahoo
WESCO International (WCC) Surged Amid a Solid Demand Environment
Diamond Hill Capital, an investment management company, released its 'Small-Mid Cap Fund' second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q2, the market surged uniformly for the rest of the quarter following a sharp decline in April due to President Trump's 'Liberation Day' tariffs announcement. The portfolio returned 5.60% (gross) and 5.37% (net) compared to an 8.59% return for the Russell 2500 Index. For more information on the fund's top picks in 2025, please check its top five holdings. In its second-quarter 2025 investor letter, Diamond Hill Small-Mid Cap Fund highlighted stocks such as WESCO International, Inc. (NYSE:WCC). WESCO International, Inc. (NYSE:WCC) offers business-to-business distribution, logistics services, and supply chain solutions. The one-month return of WESCO International, Inc. (NYSE:WCC) was 2.73%, and its shares gained 30.21% of their value over the last 52 weeks. On August 11, 2025, WESCO International, Inc. (NYSE:WCC) stock closed at $203.55 per share, with a market capitalization of $9.905 billion. Diamond Hill Small-Mid Cap Fund stated the following regarding WESCO International, Inc. (NYSE:WCC) in its second quarter 2025 investor letter: "On an individual holdings' basis, top contributors to return in Q2 included Red Rock Resorts and WESCO International, Inc. (NYSE:WCC). Shares of industrial distributor WESCO rose amid a solid demand environment, particularly among data center customers. Long term, we expect WESCO to leverage its significant scale advantage to capture market share and improve margins. Further, the company is well-positioned to benefit from several secular tailwinds aside from data centers — all factors which the market has not yet fully appreciated." A team of professionals operating high and medium voltage project design. WESCO International, Inc. (NYSE:WCC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held WESCO International, Inc. (NYSE:WCC) at the end of the first quarter, which was 62 in the previous quarter. While we acknowledge the potential of WESCO International, Inc. (NYSE:WCC) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered WESCO International, Inc. (NYSE:WCC) and shared the list of cheap value stocks to buy according to Seth Klarman. Third Avenue Real Estate Value Fund increased its investment in WESCO International, Inc. (NYSE:WCC) during Q2 2025. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Third Avenue Real Estate Value Fund Added WESCO International (WCC) Citing Diverse Growth Signals
Third Avenue Management, an investment management company based in New York City, released its 'Third Avenue Real Estate Value Fund' second-quarter 2025 investor letter. A copy of the letter can be downloaded here. For the six months ended June 30, 2025, the fund returned +6.38% (after fees) compared to +6.66% (before fees) for the FTSE EPRA NAREIT Developed Index. The fund generated an annualized return of +8.94% (after fees) since its inception in 1998. For more information on the fund's top picks in 2025, please check its top five holdings. In its second-quarter 2025 investor letter, Third Avenue Real Estate Value Fund highlighted stocks such as WESCO International, Inc. (NYSE:WCC). WESCO International, Inc. (NYSE:WCC) offers business-to-business distribution, logistics services, and supply chain solutions. The one-month return of WESCO International, Inc. (NYSE:WCC) was 2.48%, and its shares gained 32.67% of their value over the last 52 weeks. On August 7, 2025, WESCO International, Inc. (NYSE:WCC) stock closed at $206.26 per share, with a market capitalization of $10.037 billion. Third Avenue Real Estate Value Fund stated the following regarding WESCO International, Inc. (NYSE:WCC) in its second quarter 2025 investor letter: "When considering the above factors and the significant volatility for all things 'trade related' more recently, the Fund opted to increase its holdings in Prologis Inc. ('Prologis') and WESCO International, Inc. (NYSE:WCC) during the quarter. A team of professionals operating high and medium voltage project design. WESCO International, Inc. (NYSE:WCC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held WESCO International, Inc. (NYSE:WCC) at the end of the first quarter, which was 62 in the previous quarter. While we acknowledge the potential of WESCO International, Inc. (NYSE:WCC) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered WESCO International, Inc. (NYSE:WCC) and shared the list of cheap mid-cap stocks to add to your portfolio. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-08-2025
- Business
- Yahoo
WESCO International Inc (WCC) Q2 2025 Earnings Call Highlights: Strong Data Center Sales and ...
Organic Sales Growth: 7% year-over-year in Q2. Data Center Sales: Surpassed $1 billion, up 65% year-over-year. CSS Organic Growth: 17% in Q2. EES Organic Growth: 6% in Q2. UBS Sales Decline: 4% year-over-year. Adjusted EBITDA Margin: Up 90 basis points sequentially. Gross Margin: 21.1%, flat sequentially, down 80 basis points year-over-year. Adjusted EPS: $3.39, up 6% from the prior year. Free Cash Flow: $87 million in Q2, 45% of adjusted net income. Backlog Growth: Record levels, up year-over-year and sequentially. Preferred Stock Redemption: Completed in June, improving earnings and cash flow. Full Year Organic Sales Growth Outlook: Increased to 5% to 7%. Free Cash Flow Outlook for 2025: $600 million to $800 million. Warning! GuruFocus has detected 10 Warning Signs with WCC. Release Date: July 31, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points WESCO International Inc (NYSE:WCC) reported a strong acceleration in sales momentum, with organic sales growing 7% in Q2, marking three consecutive quarters of growth. Data center sales surpassed $1 billion in the second quarter, up 65% year-over-year, driven by AI-driven data centers. Adjusted EBITDA margin improved by 90 basis points sequentially due to strong operating cost leverage and stable gross margin. The company completed the redemption of its preferred stock, strengthening the balance sheet and improving earnings and cash flow run rates. Backlog reached record levels, increasing both year-over-year and sequentially across all three business units, indicating strong future demand. Negative Points Utility sales declined in the first half of the year, with UBS sales down 4% year-over-year in Q2, although there are signs of improvement. Gross margin was down 80 basis points year-over-year due to project and product mix in CSS and EES. Adjusted SG&A increased approximately 8% year-over-year, driven by higher employee and facility costs. The company faces potential impacts from recent tariff announcements, including supplier price increases and potential lower customer demand. Adjusted EBITDA margin for UBS was down 160 basis points year-over-year, reflecting challenges in the utility market. Q & A Highlights Q: Can you confirm if the gross margin benefit from any price increases in the second half of the year is included in the guidance? Also, have you seen a genuine demand increase in July, or was it mainly due to easier comparisons? A: None of the tariff impacts, whether on sales or gross margin, are included in our second half outlook. Regarding July, we are encouraged by the start. CSS continues its momentum, EES shows accelerating growth, and UBS is now tracking positive growth, indicating accelerating momentum. Q: Can you provide more insight into the utility segment, particularly the trends in investor-owned utilities (IOUs) and public power customers? A: IOUs, which form the largest part of our utility sales, returned to growth in Q2, driven by new program wins and resumed shipments. Public power customers were still down due to a slower recovery. However, we expect public power to return to growth in the second half, supported by a strong backlog in transmission and substation business. Q: With the significant increase in the data center outlook for 2025, what metrics are you tracking to ensure these trends continue? A: We have strong visibility due to our direct end-user customer relationships, including hyperscalers and enterprise-class customers. We track customer R&D investment plans and build schedules. Our backlog growth, up 11% sequentially and 36% year-over-year, provides a good look into future demand. Q: How has the growth opportunity in gray space versus white space in data centers evolved? A: We have a strong position in white space, but gray space is growing faster, with EES sales into data centers growing at 90% year-over-year in Q2. While the majority of sales are still in white space, the gray space is expanding due to our role as a one-stop shop for end-user data center customers. Q: Can you clarify the impact of copper price fluctuations on your business and the potential sales slowdown in the rest of the quarter? A: Commodities, including copper, represent a mid-single-digit percentage of our revenue, with prices typically repriced weekly. We saw some copper benefit in Q2, but it was not material. It's challenging to discern the impact of pricing in July, and we haven't seen a material impact from copper volatility through Q2. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
13-07-2025
- Business
- Yahoo
A Note On WESCO International, Inc.'s (NYSE:WCC) ROE and Debt To Equity
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. To keep the lesson grounded in practicality, we'll use ROE to better understand WESCO International, Inc. (NYSE:WCC). Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for WESCO International is: 14% = US$722m ÷ US$5.0b (Based on the trailing twelve months to March 2025). The 'return' is the income the business earned over the last year. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.14 in profit. See our latest analysis for WESCO International One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. If you look at the image below, you can see WESCO International has a similar ROE to the average in the Trade Distributors industry classification (14%). That isn't amazing, but it is respectable. Although the ROE is similar to the industry, we should still perform further checks to see if the company's ROE is being boosted by high debt levels. If so, this increases its exposure to financial risk. You can see the 2 risks we have identified for WESCO International by visiting our risks dashboard for free on our platform here. Most companies need money -- from somewhere -- to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same. It's worth noting the high use of debt by WESCO International, leading to its debt to equity ratio of 1.01. While its ROE is pretty respectable, the amount of debt the company is carrying currently is not ideal. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time. Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. In our books, the highest quality companies have high return on equity, despite low debt. If two companies have the same ROE, then I would generally prefer the one with less debt. But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to take a peek at this data-rich interactive graph of forecasts for the company. But note: WESCO International may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-06-2025
- Business
- Yahoo
KeyBanc Maintains a Buy on WESCO International (WCC), Raises PT to $210
WESCO International, Inc. (NYSE:WCC) is one of the . In a report released on June 13, Kenneth Newman from KeyBanc maintained a Buy rating on WESCO International, Inc. (NYSE:WCC), raising the price target to $210 from $180. The rating update came after the company reported an eventful fiscal Q1 earnings season, along with the firm's Industrials and Basic Materials Conference in Boston. A team of professionals operating high and medium voltage project design. The analyst told investors that while broader macroeconomic uncertainty remains high amid fluid global trade dynamics, recent data points associated with its coverage have come in better than initially feared. WESCO International, Inc. (NYSE:WCC) provides business-to-business logistics services, distribution services, and supply chain solutions. Its operations are divided into the following segments: Electrical and Electronic Solutions (EES), Communications and Security Solutions (CSS), and Utility and Broadband Solutions (UBS). While we acknowledge the potential of WCC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
