Wall Street punishes WESCO

By Industrial Distribution Staff -- Industrial Distribution, 12/1/1999

Shares of WESCO International plummeted in October when the firm's profits for the third quarter missed Wall Street expectations by three cents a share. Stock in the firm, which went public in May at $18 a share, fell approximately 40 percent on the news. At press time, WESCO shares traded at $8. They briefly fell below $6 during the selloff. WESCO did report a 16 percent gain in sales during the third quarter, but noted that "although activity in our industrial business has increased when compared to last year, its pace of recovery along with its magnitude in certain sectors, such as the petro-chemical industry, is somewhat below our expectations."

The report caught many investors by surprise. "You just don't miss your first full quarter out of the box and expect not to get punished," said one Wall Street analyst.

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