Zacks Research Comments on Watsco’s Q4 Earnings (NYSE:WSO)

Watsco, Inc. (NYSE:WSO) – Research analysts at Zacks Research cut their Q4 2024 earnings per share estimates for shares of Watsco in a research report issued to clients and investors on Wednesday, November 13th. Zacks Research analyst R. Department now expects that the construction company will post earnings of $1.97 per share for the quarter, down from their previous forecast of $2.26. The consensus estimate for Watsco’s current full-year earnings is $13.06 per share. Zacks Research also issued estimates for Watsco’s Q1 2025 earnings at $2.25 EPS, Q2 2025 earnings at $4.75 EPS, Q3 2025 earnings at $4.91 EPS, Q4 2025 earnings at $2.57 EPS, Q1 2026 earnings at $2.49 EPS and Q2 2026 earnings at $5.21 EPS.

Watsco (NYSE:WSO) last announced its earnings results on Wednesday, October 23rd. The construction company reported $4.22 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.73 by ($0.51). The firm had revenue of $2.16 billion for the quarter, compared to analyst estimates of $2.24 billion. Watsco had a return on equity of 17.77% and a net margin of 6.99%. The company’s revenue for the quarter was up 1.6% compared to the same quarter last year. During the same quarter last year, the business earned $4.35 EPS.

Other research analysts have also recently issued reports about the company. JPMorgan Chase & Co. lifted their price target on Watsco from $420.00 to $425.00 and gave the company a “neutral” rating in a report on Wednesday, July 31st. Robert W. Baird decreased their price target on shares of Watsco from $550.00 to $540.00 and set an “outperform” rating on the stock in a research note on Thursday, October 24th.

Watsco Price Performance

WSO stock opened at $527.17 on Monday. The stock has a market capitalization of $21.29 billion, a price-to-earnings ratio of 40.74 and a beta of 0.88. The business has a fifty day moving average price of $493.90 and a 200 day moving average price of $483.20. Watsco has a fifty-two week low of $373.33 and a fifty-two week high of $545.49.

Watsco Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 31st. Stockholders of record on Wednesday, October 16th were given a dividend of $2.70 per share. This represents a $10.80 annualized dividend and a dividend yield of 2.05%. The ex-dividend date of this dividend was Wednesday, October 16th. Watsco’s dividend payout ratio is 83.46%.

Hedge Funds Weigh In On Watsco

Large investors have recently bought and sold shares of the business. Quarry LP bought a new position in Watsco during the second quarter worth about $26,000. EntryPoint Capital LLC boosted its stake in Watsco by 100.0% during the 1st quarter. EntryPoint Capital LLC now owns 58 shares of the construction company’s stock worth $25,000 after acquiring an additional 29 shares during the last quarter. Tortoise Investment Management LLC grew its holdings in Watsco by 76.2% during the second quarter. Tortoise Investment Management LLC now owns 74 shares of the construction company’s stock valued at $34,000 after purchasing an additional 32 shares during the period. Ashton Thomas Securities LLC bought a new stake in Watsco in the third quarter valued at approximately $43,000. Finally, Massmutual Trust Co. FSB ADV raised its holdings in Watsco by 30.6% in the third quarter. Massmutual Trust Co. FSB ADV now owns 94 shares of the construction company’s stock worth $46,000 after purchasing an additional 22 shares during the period. 89.71% of the stock is currently owned by institutional investors and hedge funds.

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.