Analyst Note| Brian Bernard, CFA, CPA |
Wesco International reported strong third-quarter results that exceeded our revenue growth and profit margin expectations. Demand remained robust across Wesco's end markets, and profitability was boosted by ongoing gross margin improvement initiatives and cost synergies derived from the June 2020 merger with Anixter International. In our view, Wesco's third-quarter performance was even more impressive when considering that supply chain disruptions and soaring inflation have created a more challenging operating environment for many industrials companies. The quarter's results tell us that Wesco has been navigating these headwinds relatively well.