PITTSBURGH - Wesco International (NYSE: NYSE:WCC), a Fortune 500 company involved in business-to-business distribution and supply chain solutions, has announced the issuance of a quarterly cash dividend for its shareholders. The company's Board of Directors declared the dividend to be $0.4125 per share for the common stock, which is slated for payment on September 30, 2024, to shareholders of record as of September 13, 2024.
Additionally, Wesco's Board also declared dividends for its 10.625% Series A Fixed-Rate Reset Cumulative Perpetual Preferred Stock, covering the period from July 1, 2024, to September 30, 2024. The preferred stock dividend amounts to $664.0625 per share or $0.6640625 per depository share, with the same payable date and record date as the common stock dividend.
Wesco International, with headquarters in Pittsburgh, Pennsylvania, reported over $22 billion in annual sales. The company touts a comprehensive product and service portfolio, which includes Electrical and Electronic Solutions, Communications and Security Solutions, and Utility and Broadband Solutions. Wesco employs around 20,000 individuals and operates nearly 800 branches, warehouses, and sales offices across more than 50 countries.
The declaration of these dividends reflects Wesco's commitment to providing value to its shareholders. The company's broad reach and extensive product offerings position it as a significant player in the distribution and logistics industry, catering to a diverse range of customers, including commercial and industrial businesses, contractors, government agencies, educational institutions, telecommunications providers, and utilities.
This financial update is based on a press release statement issued by Wesco International.
In other recent news, WESCO International reported mixed second-quarter results, falling short of expectations due to factors such as an unfavorable mix of drop-ship sales and lower volume rebates. Despite these challenges, the company generated a record $500 million in free cash flow in the first half of the year, maintaining its full-year free cash flow outlook of $800 million to $1 billion. Loop Capital has adjusted its price target for WESCO, reducing it to $190 from $200, while maintaining a Buy rating. The firm cited ongoing project delays impacting WESCO's Utility and Broadband Solutions segment as a factor in the adjustment.
Recent developments also include WESCO's repurchase of $300 million of its stock and the completion of two small software-based acquisitions. Despite experiencing slower growth, the company adjusted its sales outlook for the year while maintaining its free cash flow guidance. Loop Capital expressed confidence in WESCO's future, anticipating a rebound in utility and broadband investments, and continued secular tailwinds. The firm also highlighted WESCO's strategic capital deployment strategy, including the calling of preferred shares, expected to support earnings per share growth. These are recent developments in the company's performance and strategy.
InvestingPro Insights
Wesco International (NYSE: WCC) has recently made headlines with its dividend announcement, showcasing its commitment to shareholder returns. An InvestingPro analysis reveals notable aspects of the company's financial health and market performance that are of interest to investors.
An important highlight from the InvestingPro data is Wesco's Price/Earnings (P/E) ratio, which stands at 12.44, slightly adjusting to 12.35 for the last twelve months as of Q2 2024. This metric suggests a potentially attractive valuation relative to earnings, especially when considering the broader market context. Additionally, the company's revenue for the last twelve months as of Q2 2024 is reported at $21.95 billion, with a gross profit margin of 21.55%, indicating a solid financial foundation.
InvestingPro Tips also shed light on the company's strategic moves and market position. Wesco has been aggressive in its share buyback program, indicating management's confidence in the company's value. Moreover, the company is recognized as a prominent player in the Trading Companies & Distributors industry. On the flip side, analysts have revised their earnings expectations downwards for the upcoming period, a factor that investors may need to consider.
For those seeking more detailed analysis and additional insights, InvestingPro offers a suite of tips, with 6 more tips currently listed on the platform, which can provide further guidance on investment decisions related to Wesco International.
Overall, these insights from InvestingPro highlight Wesco's strategic financial management and its standing in the industry, which are key considerations for current and potential investors. The company's profitability over the last year and its strong return over the past five years are indicative of its resilience and potential for future growth.
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