Pittsburgh, Pennsylvania – Wesco indicates an impressive organic sales growth for the third quarter. Sales were advancing of Street expectations and has EPS adjustments of $0.30 compared to $0.01 below consensus.
The management argues with the Earnings Per Share (EPS) adjustments of $0.31, since amortization interrelated to the Interfast acquisition was not given credit. Underlying trends remain promising with organic sales growth up by 14% behind the numbers. Continued contract wins and strong operating leverage also remain encouraging. Gross margin also continues bouncing around with quarterly product mixes and still seem to accelerate over time. Management is encouraged with accelerated commercial build rates, strong contract signings, increased leverage from Interfast, as well as the recent increase in contracts and salespeople.
Management is still optimistic about the year ahead, although it did not offer guidance for fiscal 2015. The company’s organic growth of 14% was considered the best throughout the period. Although the management is concerned about sequestration cuts, Wesco is determined by taking shares through contract wins, increased customer penetration, and international expansion. Management still believes in the company’s customer value proposition and business model, while they see upside earnings and impressive organic sales growth through market share gains, operating leverage, and customer production growth.