WESCO International, Inc. (WCC)
Wesco International (NYSE:WCC) will have its Investor Day event today. During the event, the company will explain its plans to start a quarterly common stock dividend program that will begin in 2023, reaffirm its financial outlook for 2022, and present long-term growth expectations.
The business projects a 16% to 18% increase in sales, a 7.8% to 8.0% increase in adjusted EBITDA, and adjusted EPS of $15.60 to $16.40 for the year, as opposed to the consensus estimate of $15.98. It anticipates long-term organic sales compound annual growth rates of “mid-single digit plus,” with EBITDA and EPS increasing at least twice as quickly as sales growth and free cash flow creation equivalent to 100% of yearly adjusted net income.
The industrial company also intends to return $1.5 billion to shareholders over the course of the following five years through the implementation of its previously announced authorization for share repurchases as well as a quarterly cash dividend on its common shares.
In other developments, Wesco (WCC) has agreed to buy Rahi Systems, a company situated in Fremont, California, for $217M. This acquisition price is equivalent to 7.5x Rahi’s anticipated trailing 12-month adj. EBITDA. Global hyper-scale data center solutions are offered by Rahi Systems. Wesco (WCC) will join Rahi with its strategic business unit for communication and security solutions after this acquisition.
Since its beginning, Rahi has had a solid track record of above-market growth. According to Bill Geary, executive vice president and general manager of Wesco Communications and Security Solutions, this acquisition expands our comprehensive portfolio of data center solutions for integrators, contractors, and end-user clients.
The world is built, connected, powered, and protected by Wesco International (NYSE: WCC). With more than $18 billion in annual sales and its headquarters in Pittsburgh, Pennsylvania, Wesco is a FORTUNE 500® corporation and is a premier supplier of supply chain solutions, logistics services, and business-to-business distribution.
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