Sunday, February 23, 2014

WESCO Equity Research and Analysis

The industrial sector's winter of discontent continued with industrial supply company WESCO (NYSE: WCC  ) managing to miss estimates in the fourth quarter. There is no doubt that weather has had a serious effect on the industrial sector, but anecdotal evidence suggests that long-cycle industrial orders are doing well. Meanwhile, companies exposed to short-cycle orders are seeing an inevitable slowdown. Is this creating a buying opportunity whereby growth will snap back rapidly? Moreover, which sectors are seeing growth?

WESCO misses estimates
Sales came in below internal expectations for the fourth quarter, and WESCO further disappointed the market by announcing that its January sales to date were down 4%. All of which must make Foolish investors wonder how the company is going to hit its guidance of flat to 3% growth in sales for the first quarter.

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