Looking ahead, RBC Capital anticipates that WESCO will set its 2025 EPS guidance in the range of $13.50 to $15.50, enveloping both the firm’s estimate of $14.40 and the consensus of $14.41.
Additionally, the company is expected to introduce organic growth guidance for 2025 between 3% and 6%, which is in line with RBC Capital’s estimate of 4.3% and the consensus of 4.0%. The adjusted EBITDA margin is forecasted to be set at 7.0% to 7.3%, closely matching RBC Capital’s estimate of 7.2% and the consensus of 7.1%.
With current EBITDA at $578.21M and trading at a P/E ratio of 30.25, investors can find detailed valuation metrics and 8 additional ProTips on InvestingPro. With current EBITDA at $578.21M and trading at a P/E ratio of 30.25, investors can find detailed valuation metrics and 8 additional ProTips on InvestingPro.
RBC Capital analysts expect WESCO to report fourth-quarter earnings per share (EPS) of $3.25, aligning with the consensus forecast. The analysts project a modest organic sales increase of 1.6%, slightly above the consensus of 1.4%. This growth is expected to be driven by a 2% increase in Electrical & Electronic Solutions (EES), an 8% rise in Communications & Security Solutions (CSS) due to datacenter demand, and a 6% decrease in Utility and Broadband Solutions (UBS).
The report suggests that WESCO may benefit from an improvement in short-cycle industrial demand, as indicated by the December ISM New Orders index rising to 52.5. This could lead to a year-over-year expansion of 20 basis points in EBITDA margin to 7.2%, compared to a flat consensus. The firm also speculates that WESCO might provide more details on the composition of its datacenter business and its expansion into the back-end infrastructure market.
Looking ahead, RBC Capital anticipates that WESCO will set its 2025 EPS guidance in the range of $13.50 to $15.50, enveloping both the firm’s estimate of $14.40 and the consensus of $14.41.
Additionally, the company is expected to introduce organic growth guidance for 2025 between 3% and 6%, which is in line with RBC Capital’s estimate of 4.3% and the consensus of 4.0%. The adjusted EBITDA margin is forecasted to be set at 7.0% to 7.3%, closely matching RBC Capital’s estimate of 7.2% and the consensus of 7.1%.
In other recent news, Flowserve Corporation (NYSE:FLS) announced a quarterly cash dividend of $0.21 per share, maintaining its 18-year dividend payment history. The company also reported a strong third-quarter performance with revenues reaching $1.1 billion, a 3.5% increase year-over-year, and adjusted earnings per share growing by 24% to $0.62.
Flowserve’s backlog increased by $100 million to $2.8 billion, with bookings of $1.2 billion and a book-to-bill ratio of over 1.06. The corporation reaffirmed its full-year adjusted earnings guidance of $2.60 to $2.75 per share.
Notable analyst activity includes Jefferies maintaining its Buy rating on Flowserve, projecting a potential increase in earnings to approximately $5 per share by 2027. Goldman Sachs upgraded Flowserve to Neutral, recognizing the company’s significant operational improvements and positive growth outlook for its end markets.
Flowserve’s recent developments include the successful integration of MOGAS Industries, which is expected to enhance product offerings and generate $15 million in cost synergies. The company also anticipates continued growth in power markets, with nearly 30% growth in power bookings year-over-year.
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