What Happened?
Shares of electrical supply company WESCO (NYSE: WCC) jumped 12.9% in the morning session after the company reported third-quarter results that surpassed Wall Street's expectations for both revenue and profit.
The electrical and industrial products supplier announced net sales of $6.2 billion, a 12.9% increase from the same period last year and ahead of consensus estimates. A key highlight for investors was the company's organic revenue growth of 12.1%, which significantly outperformed analysts' forecasts of 7.1%. On the bottom line, WESCO's adjusted earnings per share came in at $3.92, also beating expectations. The strong performance across the board signaled robust underlying demand, leading to increased investor confidence.
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What Is The Market Telling Us
WESCO’s shares are quite volatile and have had 15 moves greater than 5% over the last year. But moves this big are rare even for WESCO and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 17 days ago when the stock gained 2.8% on the news that a softened tone from President Donald Trump on U.S.-China relations boosted investor sentiment. The positive shift followed a weekend post on Truth Social where Trump stated, "Don't worry about China, it will all be fine!" and expressed a desire to help rather than hurt the country's economy. This statement provided significant relief to markets that had ended the prior week with steep losses. In response, the Nasdaq Composite jumped 2.2%, the S&P 500 gained 1.6%, and the Dow Jones Industrial Average closed 1.3% higher, as investors' fears of escalating trade tensions subsided.
WESCO is up 41.3% since the beginning of the year, and at $251.47 per share, has set a new 52-week high. Investors who bought $1,000 worth of WESCO’s shares 5 years ago would now be looking at an investment worth $6,098.
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