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UPDATE 2-Wesco Int'l Q1 results beat estimates
April 22, 2010 / 11:46 AM / 7 years ago

UPDATE 2-Wesco Int'l Q1 results beat estimates

* Q1 EPS $0.50 vs est $0.39

* Sales fall 3 pct

* Shares hit 22-month high (Recasts; adds conference call details, share movement)

April 22 (Reuters) - Electrical products distributor Wesco International Inc (WCC.N) posted better-than-expected quarterly results, helped by higher sales at its industrial markets, and forecast second-quarter sales above market estimates, sending its shares up 10 percent.

On a conference call with analysts, the company forecast 2 percent to 4 percent sequential sales growth for the second quarter.

This implies revenue of about $1.17 billion to $1.19 billion, compared with analysts’ average estimate of $1.14 billion.

Wesco is counting on demand from outside the weak non-residential construction market for growth in 2010.

The company said it is seeing strong project activity in its government and data communications end markets. Sales to customers in government and data communications grew 31 percent and 6 percent, respectively, in the first quarter.

Wesco has already booked over $50 million of orders related to stimulus projects, and there are more $340 million worth of government and stimulus projects that will be put out to bid, a company executive said.

For the first quarter, net income fell to $21.7 million, or 50 cents a share, from $23.3 million, or 55 cents per share, a year ago.

Sales fell 3 percent to $1.15 billion. Industrial sales grew 13 percent.

Analysts on average expected earnings of 39 cents a share, before special items, on revenue of $1.11 billion, according to Thomson Reuters I/B/E/S.

Shares of the company were trading up 8 percent at $41.06 Thursday afternoon on the New York Stock Exchange. They touched a high of $41.83 earlier in the session. (Reporting by Divya Sharma in Bangalore; Editing by Gopakumar Warrier, Anne Pallivathuckal)

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