Brokers Issue Forecasts for Watsco, Inc.’s FY2024 Earnings (NYSE:WSO)

Watsco, Inc. (NYSE:WSO) – Zacks Research decreased their FY2024 earnings per share (EPS) estimates for Watsco in a research note issued to investors on Tuesday, August 20th. Zacks Research analyst R. Department now anticipates that the construction company will post earnings per share of $13.72 for the year, down from their prior forecast of $13.95. The consensus estimate for Watsco’s current full-year earnings is $13.88 per share. Zacks Research also issued estimates for Watsco’s Q1 2025 earnings at $2.68 EPS, Q2 2025 earnings at $4.54 EPS, Q3 2025 earnings at $4.84 EPS, FY2025 earnings at $15.31 EPS, Q1 2026 earnings at $3.08 EPS, Q2 2026 earnings at $4.72 EPS and FY2026 earnings at $16.87 EPS.

Watsco (NYSE:WSO) last announced its quarterly earnings data on Tuesday, July 30th. The construction company reported $4.49 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.70 by ($0.21). The firm had revenue of $2.10 billion during the quarter, compared to the consensus estimate of $2.19 billion. Watsco had a net margin of 7.02% and a return on equity of 18.55%. The company’s revenue was up 5.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $4.42 earnings per share.

A number of other research analysts have also commented on the stock. Robert W. Baird boosted their price target on shares of Watsco from $460.00 to $522.00 and gave the company an “outperform” rating in a research report on Wednesday, July 31st. Stephens restated an “overweight” rating and issued a $500.00 target price on shares of Watsco in a research note on Thursday, April 25th. Finally, JPMorgan Chase & Co. lifted their price target on Watsco from $420.00 to $425.00 and gave the company a “neutral” rating in a research report on Wednesday, July 31st. One analyst has rated the stock with a sell rating, three have assigned a hold rating and three have given a buy rating to the stock. According to data from MarketBeat, Watsco has an average rating of “Hold” and a consensus price target of $433.71.

Watsco Stock Up 2.0 %

Watsco stock opened at $481.38 on Thursday. The firm has a 50 day simple moving average of $481.74 and a 200 day simple moving average of $449.02. The firm has a market capitalization of $19.40 billion, a price-to-earnings ratio of 37.03 and a beta of 0.88. The company has a current ratio of 3.21, a quick ratio of 1.55 and a debt-to-equity ratio of 0.01. Watsco has a 1-year low of $338.58 and a 1-year high of $520.41.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. boosted its stake in shares of Watsco by 4.5% in the 1st quarter. Vanguard Group Inc. now owns 3,411,894 shares of the construction company’s stock valued at $1,473,836,000 after purchasing an additional 146,305 shares in the last quarter. Blair William & Co. IL boosted its position in Watsco by 1.2% during the second quarter. Blair William & Co. IL now owns 801,152 shares of the construction company’s stock valued at $371,126,000 after buying an additional 9,141 shares during the period. Markel Group Inc. grew its stake in shares of Watsco by 0.9% during the second quarter. Markel Group Inc. now owns 571,250 shares of the construction company’s stock valued at $264,626,000 after buying an additional 5,000 shares during the last quarter. Bank of New York Mellon Corp increased its holdings in shares of Watsco by 1.6% in the second quarter. Bank of New York Mellon Corp now owns 393,032 shares of the construction company’s stock worth $182,068,000 after buying an additional 6,320 shares during the period. Finally, Raymond James & Associates lifted its stake in shares of Watsco by 1.8% in the 1st quarter. Raymond James & Associates now owns 366,739 shares of the construction company’s stock valued at $158,420,000 after acquiring an additional 6,436 shares during the last quarter. 89.71% of the stock is currently owned by institutional investors.

Watsco Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, July 31st. Shareholders of record on Tuesday, July 16th were paid a $2.70 dividend. This represents a $10.80 annualized dividend and a yield of 2.24%. The ex-dividend date was Tuesday, July 16th. Watsco’s dividend payout ratio is currently 83.08%.

Watsco Company Profile

Watsco, Inc, together with its subsidiaries, engages in the distribution of air conditioning, heating, refrigeration equipment, and related parts and supplies in the United States and internationally. The company distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment.