WESCO Int'l (NYSE: WCC) reported Q3 EPS of $1.52, $0.08 better than the analyst estimate of $1.44. Revenue for the quarter came in at $2.1 billion versus the consensus estimate of $2.15 billion.

The following are results for the three months ended September 30, 2019 compared to the three months ended September 30, 2018:

• Net sales were $2.1 billion for the third quarter of 2019, up 3.9% compared to the third quarter of 2018. Organic sales for the third quarter of 2019 grew by 3.4% as foreign exchange rates negatively impacted net sales by 0.4%, and acquisitions positively impacted net sales by 0.9%. Sequentially, there was no change in net sales; organic sales increased 1.2%.
• Cost of goods sold for the third quarter of 2019 and 2018 was $1.7 billion, and gross profit was $400.2 million and $397.2 million, respectively. As a percentage of net sales, gross profit was 18.6% and 19.2% for the third quarter of 2019 and 2018, respectively. Gross profit as a percentage of net sales for the third quarter of 2019 primarily reflects unfavorable business mix and the impact of supplier price increases.
• Selling, general and administrative expenses were $290.9 million, or 13.5% of net sales, for the third quarter of 2019, compared to $284.1 million, or 13.7% of net sales, for the third quarter of 2018.
• Operating profit was $93.7 million for the third quarter of 2019, compared to $97.5 million for the third quarter of 2018. Operating profit as a percentage of net sales was 4.4% for the current quarter, compared to 4.7% for the third quarter of the prior year.
• Net interest and other for the third quarter of 2019 was $13.5 million, compared to $17.1 million for the third quarter of 2018. The resolution of transfer pricing matters associated with the Canadian taxing authority resulted in non-cash interest income of $3.7 million for the third quarter of 2019.
• The effective tax rate for the third quarter of 2019 was 19.8%, compared to 17.2% for the third quarter of 2018. The higher effective tax rate in the current quarter is primarily due to the full application of the international provisions of U.S. tax reform, as well as taxes attributable to the undistributed earnings of operations in China that are expected to be remitted in the future.
• Net income attributable to WESCO International, Inc. was $64.5 million for the third quarter of 2019, compared to $66.8 million for the third quarter of 2018.
• Earnings per diluted share for the third quarter of 2019 was $1.52, based on 42.4 million diluted shares, compared to $1.41 for the third quarter of 2018, based on 47.5 million diluted shares, an increase of 8%.
• Operating cash flow for the third quarter of 2019 was $125.4 million, compared to $87.6 million for the third quarter of 2018. Free cash flow for the third quarter of 2019 was $116.5 million, or 181% of net income, compared to $80.3 million, or 120% of net income, for the third quarter of 2018.

Mr. John J. Engel, WESCO's Chairman, President and CEO, commented, "We achieved record third quarter sales due to improving results in the U.S. and strength in Industrial, Utility and Datacom. Despite an economic backdrop of increased headwinds, all of our end markets and geographies grew on a year-over-year basis as expected. Gross margin was down versus prior year primarily driven by business mix and the impact of supplier price increases, which we continue to aggressively work to pass through. Operating margin was within our expected range driven by effective cost management and EPS grew 8% versus prior year. Free cash flow generation was also very strong at over 180% of net income due to inventory reduction and strong collections in the quarter."

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