WESCO Int'l (NYSE: WCC) reported Q4 EPS of $1.22, $0.11 worse than the analyst estimate of $1.33. Revenue for the quarter came in at $4.1 billion versus the consensus estimate of $4.12 billion.

Fourth quarter summary:

• Net sales of $4.1 billion, up 97% due to the Anixter merger
• Operating profit of $93 million; operating margin of 2.2%
• Adjusted operating profit of $172 million; adjusted operating margin of 4.2%
• Earnings per diluted share of $0.11
• Adjusted earnings per diluted share of $1.22
• Operating cash flow of $125 million
• Free cash flow of 161% of adjusted net income
• Leverage of 5.3x; net debt reduction of $109 million

“Fiscal 2020 will be remembered as one of the most important in WESCO’s history. We completed the transformational acquisition of Anixter, doubling our size and changing our trajectory for years to come. We designed and launched a three-year integration plan which in just six months has delivered synergies in excess of our initial targets,” said John Engel, Chairman, President and CEO. “And at the same time, we delivered operating results during a global pandemic which demonstrate the strength of our franchise, the commitment of our extraordinary team of associates, and position us well for future growth as the economy continues its recovery and the secular trends supporting our future growth generate momentum across our business units."

"In the six months since completing the acquisition of Anixter we have already reduced net debt by $389 million. We are confident that we will exceed the synergy targets that we’ve set for our three-year plan. The combination of WESCO and Anixter creates cross-selling opportunities, with initiatives underway that have already delivered early successes. We enter 2021 with a record backlog, a new organizational structure, and the strongest management team we’ve fielded during my time with the Company."

“For 2021, WESCO is exceptionally well positioned to support our customers with an expanded set of products and differentiated services. The efficiencies we capture through our larger scale will combine with growth in electrification, automation, communications and security across our three global business units to drive our performance this year. As such, we expect to outperform in our end markets with sales increasing from 3% to 6% in all three of our business units. We also see our adjusted EBITDA margins expanding to 5.4% to 5.7% and adjusted EPS growing to between $5.50 to $6.00, with free cash flow generation reaching 100% or more of net income.”

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