WESCO International, Inc.'s (NYSE:WCC) Earnings Grew 29%, Did It Beat Long-Term Trend?
Measuring WESCO International, Inc.'s (NYSE:WCC) track record of past performance is a useful exercise for investors. It enables us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess WCC's recent performance announced on 30 June 2019 and weigh these figures against its long-term trend and industry movements.
View our latest analysis for WESCO International
Could WCC beat the long-term trend and outperform its industry?
WCC's trailing twelve-month earnings (from 30 June 2019) of US$231m has jumped 29% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -6.9%, indicating the rate at which WCC is growing has accelerated. What's the driver of this growth? Let's take a look at if it is merely due to industry tailwinds, or if WESCO International has experienced some company-specific growth.
In terms of returns from investment, WESCO International has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. However, its return on assets (ROA) of 5.9% exceeds the US Trade Distributors industry of 5.6%, indicating WESCO International has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for WESCO International’s debt level, has declined over the past 3 years from 9.5% to 9.1%.
What does this mean?
WESCO International's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. While WESCO International has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I suggest you continue to research WESCO International to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for WCC’s future growth? Take a look at our free research report of analyst consensus for WCC’s outlook.
Financial Health: Are WCC’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 2019. This may not be consistent with full year annual report figures.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
