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Byline: Paul Whitfield
Pittsburgh-based Wesco International has bounced off its 10-week moving average after finding support there the past three weeks.
The electrical parts and equipment distributor increased sales with two acquisitions in 2005. The acquired companies had higher margins than Wesco, helping the midcap improve its after-tax margin from 1.7% in the fourth quarter of 2004 to 2.7% in the quarter ended in September.
Earnings grew 81%, 57%, 27% and 50% the past four quarters, according to Thomson First Call, while sales rose 16%, 17%, 14% and 16%. Analysts expect fourth-quarter EPS to jump 61% and sales to gain 19%.
Wesco's ...