Wesco earnings miss as costs rise
(Reuters) - Electrical products distributor Wesco International Inc's (WCC.N) quarterly profit missed estimates for the first time in more than two years, as rising costs took the gloss off a 10 percent jump in sales.
Analysts have said tough operating environment across geographies will pose the greatest risk to industrial earnings in the next two years.
Wesco, which supplies products ranging from lamps to industrial computers, reported earnings of $58.9 million, or $1.15 per share, compared with $50.2 million, or $1.00 per share, a year earlier.
Revenue rose 10 percent to $1.67 billion.
Selling, general & administrative expenses rose 8 percent to $231.2 million.
Analysts on average were expecting earnings of $1.21 per share on revenue of $1.69 billion, according to Thomson Reuters I/B/E/S.
For the third quarter, the company expects revenue to grow between 9 percent and 11 percent, implying a range of $1.72 billion to $1.75 billion. Analysts were expecting third-quarter revenue of $1.74 billion.
The company's shares, which shed 16 percent of their value in the last three months, closed at $57.00 on Wednesday on the New York Stock Exchange.
(Reporting by Bijoy Koyitty in Bangalore)