WESCO International, Inc. Beat Revenue Forecasts By 5.0%: Here's What Analysts Are Forecasting Next

Shareholders of WESCO International, Inc. (NYSE:WCC) will be pleased this week, given that the stock price is up 15% to US$260 following its latest quarterly results. Results overall were respectable, with statutory earnings of US$3.79 per share roughly in line with what the analysts had forecast. Revenues of US$6.2b came in 5.0% ahead of analyst predictions. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the eleven analysts covering WESCO International are now predicting revenues of US$24.7b in 2026. If met, this would reflect a satisfactory 7.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 26% to US$16.40. Before this earnings report, the analysts had been forecasting revenues of US$24.1b and earnings per share (EPS) of US$15.83 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Check out our latest analysis for WESCO International

With these upgrades, we're not surprised to see that the analysts have lifted their price target 6.4% to US$261per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values WESCO International at US$300 per share, while the most bearish prices it at US$200. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the WESCO International's past performance and to peers in the same industry. We would highlight that WESCO International's revenue growth is expected to slow, with the forecast 5.9% annualised growth rate until the end of 2026 being well below the historical 9.9% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.9% annually. So it's pretty clear that, while WESCO International's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards WESCO International following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that WESCO International will grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for WESCO International going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with WESCO International (at least 1 which is concerning) , and understanding these should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.