Transocean's stock could surge with $60 oil -Barron's
NEW YORK, Feb 26 Shares of Transocean Ltd could rise more than 35 percent in the next year or two if oil prices top $60 a barrel, Barron's said in an article on Sunday.
* Q2 EPS $0.60 vs est $0.58/shr
* Q2 revenue up 9 pct
* Sees pressure on construction, utility markets
* Sees Q3 sales to be flat to slightly up sequentially
* Shares fall as much as 5 pct (Adds details)
BANGALORE, July 22 Electrical products distributor Wesco International (WCC.N) posted strong quarterly results on higher revenue from its industrial end-market, but said its construction and utility end-markets will see pressure in the third quarter, sending its shares down 5 percent.
Wesco, which supplies products ranging from lamps to industrial computers to batteries, said the market is expecting a decline of about 20 percent in overall non-residential construction starts in 2010.
"We continue to hear contractor customers express serious concerns over future activity levels," a company executive said on a conference call with analysts.
For the third quarter, the company forecast sales to be flat to slightly higher on a sequential basis. [ID:nWNAB8355]
Wesco, which depends on the construction and industrial end-markets for most of its revenue, said it expects the industrial economy to shift to a more gradual rate of recovery in the third quarter.
The No. 1 maker of construction and mining equipment Caterpillar on Thursday said most economies are in recovery, but a double-dip recession in Europe and North America remains possible.
Caterpillar and other major U.S. industrials such as UPS (UPS.N), 3M Co. (MMM.N) and Danaher Corp. (DHR.N) reported strong quarterly results, driving the S&P Cap Goods index .GSPIC up 3 percent. [ID:nN22177201]
Also beating Wall Street estimates were Thomas & Betts TNB.N [ID:nSGE66L0LY] and Hubbell HUBb.N [ID:nSGE66L0O8]
For the second quarter, Wesco reported net income of $27.8 million, or 60 cents a share, compared with $26.4 million, or 62 cents a share, a year ago.
Sales at the company, which has branches in countries including the United States, Canada, Mexico and the UK, rose 9 percent to $1.26 billion.
Analysts on average were expecting earnings of 58 cents a share on revenue of $1.19 billion, according to Thomson Reuters I/B/E/S.
"All four of our major end markets and all six of our major product categories experienced positive sequential sales growth during the quarter," Chief Executive John Engel said in a statement.
Shares of Wesco, which rose 2 percent in early trade, pared the gains and were trading down 3 percent at $35.59 Thursday afternoon on the New York Stock Exchange. (Reporting by Rachel Chitra and Bijoy Koyitty in Bangalore; Editing by Roshni Menon and Don Sebastian)
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