WESCO (WCC) Stock Forecast & Price Target

WESCO International's preliminary January sales demonstrated a 5% year-over-year increase, excluding mergers and acquisitions, showcasing robust organic growth largely fueled by a remarkable 60% increase in sales from data centers. Furthermore, the company reported organic sales growth of 2.4% in the quarter, surpassing consensus estimates and indicating strength in its underlying business mix. Total sales are projected to grow between 0% to 4%, reaching approximately $21.8 to $22.7 billion, driven by continued demand in large-scale data center projects and improved operating leverage, which contributed to a margin increase of 10 basis points year-over-year.

WESCO International reported adjusted fourth-quarter 2024 earnings per share (EPS) of $3.16, falling short of expectations by approximately 3%, indicating potential challenges in short-cycle business recovery. The company's guidance for 2025 reflects subdued organic growth projections of 2.5% to 6.5%, highlighting a reliance on mid-teens growth in datacenter projects while facing broader industry headwinds, particularly in the utility sector. Additionally, WESCO's contract segment experienced a year-over-year margin decline of 150 basis points, further complicating its financial outlook amid concerns over free cash flow (FCF) misses and vulnerability to economic slowdowns in cyclical industrial markets.