Last week, you might have seen that WESCO International, Inc. (NYSE:WCC) released its quarterly result to the market. The early response was not positive, with shares down 6.7% to US$203 in the past week. It looks like a credible result overall - although revenues of US$5.9b were in line with what the analysts predicted, WESCO International surprised by delivering a statutory profit of US$3.83 per share, a notable 15% above expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the most recent consensus for WESCO International from ten analysts is for revenues of US$22.9b in 2025. If met, it would imply a modest 3.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 2.0% to US$13.30. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$22.6b and earnings per share (EPS) of US$13.04 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for WESCO International
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 8.0% to US$230. It looks as though they previously had some doubts over whether the business would live up to their expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic WESCO International analyst has a price target of US$245 per share, while the most pessimistic values it at US$180. This is a very narrow spread of estimates, implying either that WESCO International is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that WESCO International's revenue growth is expected to slow, with the forecast 6.4% annualised growth rate until the end of 2025 being well below the historical 12% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.1% annually. So it's pretty clear that, while WESCO International's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for WESCO International going out to 2027, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for WESCO International (1 is a bit unpleasant) you should be aware of.
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This 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.