WESCO Int'l (NYSE: WCC) reported Q2 EPS of $1.22, $0.01 worse than the analyst estimate of $1.23. Revenue for the quarter came in at $2.1 billion versus the consensus estimate of $2.1 billion.

Mr. John J. Engel, WESCO's Chairman, President and CEO, commented, \"Our broad-based return to growth, which began in mid-2017, continued in the second quarter. Organic sales grew 9%, with all end markets and geographies contributing to growth for the fourth consecutive quarter. Sales growth was consistently strong throughout the quarter and our backlog expanded to a record high level. Gross margin was sequentially stable, and we delivered double digit growth in operating profit and EPS for the second quarter in a row."

The following are results for the three months ended June 30, 2018 compared to the three months ended June 30, 2017:

• Net sales were $2.1 billion for the second quarter of 2018, compared to $1.9 billion for the second quarter of 2017, an increase of 10.2%. Organic sales for the second quarter of 2018 grew by 9.0% as foreign exchange rates impacted net sales by 1.2%. Sequentially, net sales increased 5.5% and organic sales increased 6.1%.
• Cost of goods sold for the second quarter of 2018 was $1.7 billion and gross profit was $399.9 million, compared to cost of goods sold and gross profit of $1.5 billion and $366.1 million, respectively, for the second quarter of 2017. As a percentage of net sales, gross profit was 19.0% and 19.2% for the second quarter of 2018 and 2017, respectively. A reclassification of certain labor costs from selling, general and administrative expenses and the mix impact of growth in the International and Utility businesses collectively reduced gross margin for the second quarter of 2018 by 30 basis points.
• Selling, general and administrative (\"SG&A\") expenses were $292.9 million, or 13.9% of net sales, for the second quarter of 2018, compared to $267.8 million, or 14.0% of net sales, for the second quarter of 2017. SG&A for the second quarter of 2018 included the restoration of incentive compensation of approximately $8.0 million and a bad debt charge of $2.5 million related to a Canadian customer that ceased operations.
• Operating profit was $91.2 million for the second quarter of 2018, compared to $82.6 million for the second quarter of 2017, an increase of 10.4%. Operating profit as a percentage of net sales was 4.3% for the second quarter of 2018 and 2017. Excluding the aforementioned bad debt charge, operating profit as a percentage of net sales was 4.5% for the second quarter of 2018.
• Net interest and other for the second quarter of 2018 was $17.7 million, compared to $16.3 million for the second quarter of 2017. For the three months ended June 30, 2018, net interest and other includes accelerated amortization of debt discount and debt issuance costs totaling $0.8 million due to early repayments on our term loan facility.
• The effective tax rate for the second quarter of 2018 was 21.5%, compared to 25.3% for the second quarter of 2017. The lower effective tax rate in the current quarter is primarily due to the Tax Cuts and Jobs Act of 2017, which permanently reduced the U.S. federal statutory income tax rate from 35% to 21%, effective January 1, 2018.
• Net income attributable to WESCO International, Inc. was $58.0 million for the second quarter of 2018, compared to $49.5 million for the second quarter of 2017, an increase of 17.0%.
• Earnings per diluted share for the second quarter of 2018 was $1.22, based on 47.6 million diluted shares, compared to $1.02 for the second quarter of 2017, based on 48.8 million diluted shares, an increase of 19.6%.
• Operating cash flow for the second quarter of 2018 was $33.8 million, compared to $19.1 million for the second quarter of 2017. Free cash flow for the second quarter of 2018 was $25.1 million, or 44% of net income, compared to $13.8 million, or 28% of net income, for the second quarter of 2017.

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