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Dec 31, 2019
WESCO Q4 2019 Earnings Report
WESCO achieved sales growth and managed costs effectively in Q4 2019.
Key Takeaways
WESCO International Inc. reported a 4.4% increase in net sales to $2.1 billion for Q4 2019. Organic sales grew by 3.9%. Earnings per diluted share were $1.26, or $1.32 adjusted for merger-related transaction costs. The company's operating cash flow was $108 million, and free cash flow was $94 million.
Consolidated net sales increased by 4.4% to $2.1 billion.
Organic sales grew by 3.9%.
Earnings per diluted share were reported as $1.26 ($1.32 adjusted for merger-related transaction costs).
Operating cash flow reached $108 million, with free cash flow at $94 million.
Forward Guidance
WESCO expects to outperform the market by leveraging its services and supply chain solutions, investing in its people and digital capabilities, and maintaining cash and cost management discipline. The company continues to expect sales growth in the range of zero to 4% this year, and provides its full year 2020 outlook for operating margin of 4.1% to 4.4%, EPS of $5.10 to $5.70 per diluted share, and free cash flow generation of at least 90% of net income excluding any impacts of the announced merger with Anixter.
Positive Outlook
- Leveraging full range of WESCO services
- Leveraging supply chain solutions
- Investments in people
- Investments in digital capabilities
- Maintaining cash and cost management discipline
Challenges Ahead
- Timing of regulatory approvals for Anixter merger
- Risk of Anixter stockholders not adopting merger agreement
- Potential disruption of management time
Historical Earnings Impact
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Avg. Return Before/After Earnings
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