WESCO International Reiterates 2014 Outlook, Guides 2015 - Analyst Blog

WESCO International Inc. (WCC) recently reaffirmed its 2014 earnings per share (EPS) and sales outlook, provided its financial outlook for 2015 and declared its share repurchase program.

Wesco international's shares went up $2.24 or 3% to $73.87 following the developments.

The company reaffirmed its sales and EPS guidance for 2014. The company expects the earnings per share of $5.25-$5.35 for the year.

The current Zacks Consensus Estimate estimates EPS of $5.29 for fiscal 2014, which is within the company's guided range.

The company stated that weak demand from builders, manufacturers and other industrial customers this year kept prices for electrical products low and constricted profits.The company also stated that profits would be at the lower end of its estimate for 2014 owing to the sluggish economy that has made it more difficult to raise prices.

For fiscal 2015, the company expects earnings in the range of $5.50 to $5.90 per share and sales growth of 3% to 6%. The company estimates free cash flow to be approximately 80% of net income. The current Zacks Consensus Estimate calls for EPS of $6.06 in fiscal 2015, which is above the company's guidance.

Moreover, Wesco Interntional announced a share repurchase program starting early next year. The $300 million share repurchase program is authorized through Dec 31, 2017.

The company is of the opinion that the increasing strength in commercial and residential construction will help it grow profits in 2015. However, it is apprehensive about the effect of declining oil prices on its sales to energy-related customers.

In the past 12 months, Wesco International has acquired three companies. John Engel, the companies CEO, said that Wesco plans to continue buying other firms.

The free cash flow generation ability of its business aids sustained investment in growth initiatives, including acquisitions, while also returning capital to its shareholders.

Wesco International currently has a Zacks Rank# 3 (Hold). Nine estimates for 2014 went up in the last 60 days while two estimates moved down. The Zacks Consensus Estimate for the year has increased from $5.26 to $5.29 over this time frame.

Better-ranked technology stocks include Geeknet, Inc. (GKNT), Mercadolibre, Inc. (MELI) and Overstock.com Solutions, Inc. (OSTK). All of them sport a Zacks Rank# 2(Buy).

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