WCC - Wesco to reaffirm 2022 outlook initiate quarterly dividend program in 2023

Wesco International ( NYSE: WCC ) is scheduled to host its Investor Day event today, wherein it will reaffirm its 2022 financial outlook, provide long-term growth expectations, and discuss plans to initiate a quarterly common stock dividend program commencing in 2023.

The company expects sales to grow 16% to 18%, adjusted EBITDA to expand between 7.8% and 8.0%, and adjusted EPS of $15.60 to $16.40 vs. consensus of $15.98 for the year. Over the long term, it expects to achieve a "mid-single digit plus" organic sales compound annual growth rate, with EBITDA and EPS growing at least twice the sales growth rate, and free cash flow generation equal to 100% of adjusted net income annually

Furthermore, over the next five years, the industrial firm plans to return $1.5B of capital to shareholders in the form of a quarterly cash dividend on its common stock and by executing its previously announced share repurchase authorization.

In other news, Wesco ( WCC ) has agreed to acquire Fremont, California-based Rahi Systems for $217M; purchase price represents ~7.5x Rahi's projected trailing 12 months adj. EBITDA.

Rahi Systems provides global hyperscale data center solutions. With this acquisition, Wesco ( WCC ) will combine Rahi with its Communication and Security Solutions strategic business unit.

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