Wesco "Unacceptable" Results And Security Market Contraction Analyzed

**** ***** ***, ***** ******** *******, and *** *** **** *** *****, Wesco/Anixter's******* **** **** ******.

*******, ***** *** *********** **********, ***** we **** ******* ** **** ****.

Executive *******

***** **** ** ** ******** **** that ** *** *** ******** ****** "contract" ** *** **** ****** ** quarters, *** ** *** ******** ** lower ************ ******** ******* **** *********** in ******** ********** *****, **** ** having ******-***** ****** ** *** **** center *********. *******, ** *** * -1% *** ******* ** ** **** in *** ************** *** ******** ********* business, *** ***** * +**.*% *** growth *** *** ****** ** **** year ****.

*** ******* ********* **** ** ****** earnings ******** *** *** *** ***** declines ** ******* **** ** ***-******** in *** ** *** ****-**** **** earnings ****. *****'* ***** ********* **** than **% ** *** *** ** the ****.

*** *******'* ***** ********** ****** *** past **** *** ****** ****** **** most ****** ******, ******** **** ******** expectations *** ************* *******. ***** *** plunge ***** *** **** ****** ******** call, *****'* ***** *** ********* ~**% as ********** ********* *** *** ******* ******* this *****, *** ********** **** *********** ******** its ******.

***** *** ******* *** **** *********** its ******** ***** **** ******* *** synergies **** *******, *** ******* ******** sector, *** ********** & ********** *********(***) ********, *** **** ********** ******.**** ***** *****'* ***** ******* ** mid-2023. ******* ***** ****** ******-***** ***** in ******** ***** **** *** ******* in ****, ** ******** ******** ** all ******** ***** ** ** ****.

"Unacceptable" *******

*****'* *** **** ***** **** **** its ** **** ******* **** "*************" and "************" ** *** *******'* **** recent ******** **** *** ** *** full-year **** ** ******** **, ****:

*** *** **** *** ******** ******* earlier ***** ** *** * **** disappointing ****** ******* ** ***** *** 2023, ***** ******* **** ***** *** expectations. ***** ******* *** ************. ****'**unacceptable ** ** *** ****'** ************ ** *** ****** ***** ********** team. [emphasis added]

***** ********** **** *** ******* ** addressing *** ****** ******* *** *******:

** ********** *** ****** **** ***** our ****** ******* *******, *** **'** already ****** ******* ** ******* ****.

Negative ******** ***********

***** ****** *** ******** ****** ********** but **** ** ****** *****:

** *** *** ******* ******** ****** contract **** *** **** ****** ** quarters, *** ******* ** *** **** positioned *** ******* *****.

******** ************ **** **** ****** ********, as***'* ******* **** **** ****. *******, ** ** *** ******* the ******** ****** ** *********** ** manufacturer ******* ********* *** ******* **********.

******** *******'* ******** ******** *********** ****** *** security ******, ** *********** * ******* ****** its ************** *** ******** ********* (***) business ** ** ****:

*** ******* ********** *** ******* *** the ******* ** ******** ********** *** project ****** ********** *** *******:

******** ***** **** **** *% ****-****-****. Like *** ***** *******, ****** ** utility, **********, **** ******* *** ********** network ************** *** **** **** ****** by ******** ** *********, ********, *** and ************.

** *********** ******** ********** ** *** shorter-cycle ********** ** *** ****** *** third ********. ** *** ****** *******, we *** * ****-**** ** ****** versus *** ************, ************ ** ********.

***** ***** ************ *** ** ***** stock *** **** ***** ***** **** projects ******* **** ****.

***** **** **** **** **** ******* came ***** *** +**% **** ** sales ****** ** ********:

******** ***** **** **** *** ****** digits ****** ****, ***** *** ** more **** **% ** ***** *** midsized *********** **** ********** ******** ** lower ************ ********.

** *** ******** ****, *** ******* mentioned **** *** ******* *** "******** to ****** ***** ***** *********** ********* in ******** **** *****; **** **% YOY *** **** *% ************" ********** the *******. **** ******* ***** ** trending ****** **** *****'* *** ***** business ********, *** (********** & ********** solutions) *** *** (******* *** ********* solutions).

****, *** ******* ****** *** ***-******** performance ** **** ****** ********, ********** among **** ****** *** ********** *********:

******* ** *** *** *******. ** generated ****** ******-***** ****** ** *****data ****** ********* in 2023, along with significant share gains in security that allowed us to outgrow the market. However, enterprise network infrastructure, which is focused on service providers and data communication applications, including structured cabling products, experienced softness due to the slowing of 5G build-outs and construction-specific markets.

Enterprise ******* ************** is the largest business for CSS and makes up approximately 40% of segment revenue. In 2024, we again expect strong double-digit growth in data center and share gains in security but some of the weakness that we saw in enterprise network infrastructure is expected to remain. That said, we expect a strong volume growth year for CSS with sales up low to mid-single digits. [Emphasis added]

Missed **** ******** *** ******* *********

** ********, *** ******* ******** *** 2023 ******* ** **** ** *** lower *** ** *** ******** **** guidance ********* ** ******:

******* *** ****, ***** *** * full-year **** ***** ****** ** *% to ~$**.* *******, *** *** ******** EBITDA ******** ** *.*% ****** *** guidance, ********* ** * **** ** earnings *** ***** ** ****:

******** [...] ******** *** ******* ***** for **** *** $**.**. ******** [...] earnings *** ******* ***** *** **** was $**.**.Adjusted ******** *** ******* ***** ********* **.*% ****-****-****. [Emphasis added]

Stock ***** ******* *** ********* *********

*****'* ******* ***** ****** ******* *********, including ******* *********, ** ****. ** a ******, *****'* ***** ******* **% on *** *** ** *** ** and ****-**** **** ******** **** ** mid-February:

*** *******'* ***** ********* ** ~**% after *** ****** ** *** **** month, ** ********** *********** ***** *, ****** ********** **** *********** ******** *** price ********* ***** ***** *** ******* "********* a ****** ** ******** ************ **** the **** *** *****."

Q1 **** ***** ****, ********* *%-*% **** **** **** ***** ******

******* **** ****, ***** ******* ***** growth ** *%-*% *** ** ******** EBITDA ****** ** *.*% ** *.*%. It **** **** ** ** "******** leverage ***** ** *.**-*.** *** ****** to ******** *** ******** ** **%." The ******* **** **** **** ** expects * "**** *******" ** **** amid ********* ************* *******:

******* ********** ** **** *** ********** of * **** *******; *******, ** are ******* **** *** ******** *****, easing *********, ************ ********, *** *****-**** borrowing ***** *** ****** ******.

*** ****-**** ******* ****** ****** **** we **** ************ ********* **** ******** to ******* ** **** *** *********** to ********** *** ****** *** *** competition.

******* * ******** **** *******, *****'* sales **** **** *% *** ** January *** **** *** ** ********, the ******* ****** ***** ****** ******** *****:

"The *********** ** ******* ********* *********** *****"

******* * ************* ***** ***********, ***** touted *** ********* **** ******* *****, further *********** **** ********** *********** ** 2020. *****'* *** ***** ******* *** that *** **** "*********** *****" ** the ******* *** **** ** ******* synergy ******* *** **** ***** ** its ******** ********:

*** *********** ** ******* ********* *********** Wesco. **** *********** *** **** *********** WESCO ** *** ***** ****** ** several ** *** ******** ********, *** it **** ***-******* *** ******** ** higher ****** *** ******-****** *** *******, reducing *** *********** *** ********** *** resilience ****** *** ****** ** *** economic *****.

** ** **** ** *** *********** metrics ***** *** ***********, **** ********** the ************* *********** *** ********** ** the ****** ***** ****. ** ******** all *** ******* *********** ******* ******* set ** *** **** ** *** Anixter ***********. ***** ********* ** **%, and ******** ****** ********* ** **% compared ** *** **** *********** ** the *****-***** *********. *** ****** ****** expanded ** *** ***** ******.

** *** *** **** ***** ******* delivering *** ******* ***** ** ***** turns, *** **** ***** ** ********. Most ***********, ***** ******* *** ******* merger ** **** **** ******* *** end ** ****, ***** *********** ****** was ***% ******** ** **% *** the *&* ***.

*** ******* **** *** **** *********** in *** ******* *****:

*** *** ********** **** *** *****+******* deal *** ** ********* ****** *** its ****-**** **** ***** ****** ** its ************** *** ******** ********* (***) business:

** ** *** **** *****, ***** is **** **** **** * *********** distributor. **'** * ******** ******* ** both *** ********* *** *** ****** set ** *********. *** *********** ** WESCO *** ******* *** ******* * new ********.

**'* ********* ** **** **** *** growth ** ********* ** **** ** a ****** ********** ** *** ***** of *** ************* *********** ***-****** ******** from *** ******* ***********. ** ********* record ***** ** *** **** ****** data ****** ****** *** ***** ***** in ********.

Wesco *** **** ***** *********** ** ****

********* ** *** ****** ********** ***** prices, ***** *** **** ****** ** tell ********* **** ** ** ******** better ** **** ** *** **** month ***** *** **** ****** ******** call. ** *** ** ******** ****** ** ******** ***********, *****'* *** **** ******** ** **** ** ***** *********** ** *****'* ************** ******, *** global ****** *****, *** **'* ****** on *****'* ********:

Comparing **** ***

*** **** *** **** *******, ******* an ******** ** *******'* ***** ******* this ****, ********** ** ******** ************* resulting **** ********* **** ********* ********. For ****, ***:******* (***) ***** **** **%, ********** Analyzed