WESCO International Review Ahead of Investor Day

RBC Capital analysts provided their views on WESCO International, Inc. (NYSE:WCC) ahead of the upcoming Investor Day on September 7.

The analysts expect the overarching theme to be how the company still has ample sparks for growth, including more self-help/revenue synergies from its successful Anixter integration, as well as an array of longer-term secular growth themes, such as the electrification of everything, grid hardening, infrastructure spending, automation, and EV charging.

The analysts expect the company to reiterate its 2022 guidance from Q2/22 earnings, which includes total sales growth of 16%-18%, adjusted EBITDA margins of 7.8%-8.0%, and adjusted EPS of $15.60-$16.40, compared to the Street estimate of $16.07.

While the analysts believe there is still an upside to both the sales and cost synergy targets from the Anixter acquisition, they mentioned that the company is more likely to emphasize revenue synergies.