William Blair Brokers Increase Earnings Estimates for Watsco

Watsco, Inc. (NYSE:WSO - Free Report) - William Blair lifted their Q2 2025 EPS estimates for Watsco in a research report issued to clients and investors on Wednesday, January 15th. William Blair analyst R. Merkel now anticipates that the construction company will earn $5.12 per share for the quarter, up from their previous estimate of $5.07. The consensus estimate for Watsco's current full-year earnings is $12.97 per share. William Blair also issued estimates for Watsco's Q3 2025 earnings at $5.07 EPS, Q4 2025 earnings at $2.44 EPS and FY2026 earnings at $16.59 EPS.

A number of other brokerages have also recently issued reports on WSO. Northcoast Research began coverage on shares of Watsco in a research report on Friday, November 22nd. They set a "neutral" rating for the company. Robert W. Baird dropped their price objective on shares of Watsco from $550.00 to $540.00 and set an "outperform" rating for the company in a research note on Thursday, October 24th. Finally, Raymond James started coverage on Watsco in a research note on Friday. They issued a "market perform" rating on the stock. Three research analysts have rated the stock with a hold rating and two have assigned a buy rating to the stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $488.33.

Watsco Trading Up 1.2 %

Shares of NYSE:WSO traded up $5.82 during midday trading on Friday, hitting $496.92. 204,978 shares of the stock were exchanged, compared to its average volume of 240,780. The stock has a market cap of $20.07 billion, a P/E ratio of 38.40 and a beta of 0.95. Watsco has a twelve month low of $373.33 and a twelve month high of $571.41. The company has a 50 day moving average price of $509.11 and a 200-day moving average price of $492.08.

Watsco (NYSE:WSO - Get Free Report) last issued its quarterly earnings data on Wednesday, October 23rd. The construction company reported $4.22 earnings per share (EPS) for the quarter, missing the consensus estimate 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 business's revenue for the quarter was up 1.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $4.35 earnings per share.

Hedge Funds Weigh In On Watsco

Institutional investors have recently added to or reduced their stakes in the business. Acadian Asset Management LLC acquired a new position in shares of Watsco during the 2nd quarter valued at about $372,000. American Century Companies Inc. raised its stake in Watsco by 3.9% during the second quarter. American Century Companies Inc. now owns 13,733 shares of the construction company's stock worth $6,362,000 after purchasing an additional 513 shares during the period. Virtu Financial LLC purchased a new position in Watsco during the second quarter worth approximately $1,060,000. Argent Trust Co boosted its holdings in shares of Watsco by 1.7% in the 2nd quarter. Argent Trust Co now owns 5,806 shares of the construction company's stock valued at $2,690,000 after purchasing an additional 97 shares during the last quarter. Finally, Vanguard Personalized Indexing Management LLC grew its stake in shares of Watsco by 22.7% during the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 3,499 shares of the construction company's stock valued at $1,621,000 after buying an additional 648 shares during the period. 89.71% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other Watsco news, EVP Barry S. Logan sold 10,998 shares of the stock in a transaction on Wednesday, December 18th. The stock was sold at an average price of $508.21, for a total transaction of $5,589,293.58. The sale was disclosed in a document filed with the SEC, which is available at this link. 12.86% of the stock is owned by company insiders.

Watsco Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 31st. Investors of record on Friday, January 17th will be paid a dividend of $2.70 per share. This represents a $10.80 annualized dividend and a dividend yield of 2.17%. The ex-dividend date of this dividend is Friday, January 17th. Watsco's payout ratio is 83.46%.

About Watsco

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.