William Blair Issues Optimistic Forecast for Watsco Earnings

Watsco, Inc. (NYSE:WSO - Free Report) - Investment analysts at William Blair increased their Q3 2025 EPS estimates for shares of Watsco in a research report issued on Wednesday, April 23rd. William Blair analyst R. Merkel now anticipates that the construction company will earn $5.07 per share for the quarter, up from their prior estimate of $5.01. The consensus estimate for Watsco's current full-year earnings is $14.62 per share. William Blair also issued estimates for Watsco's Q4 2025 earnings at $2.52 EPS, FY2025 earnings at $14.62 EPS, Q2 2026 earnings at $5.05 EPS, Q3 2026 earnings at $5.27 EPS, FY2026 earnings at $15.62 EPS and FY2027 earnings at $17.30 EPS.

WSO has been the subject of several other research reports. Morgan Stanley initiated coverage on shares of Watsco in a research note on Monday, April 14th. They set an "equal weight" rating and a $515.00 price objective for the company. Loop Capital boosted their price target on shares of Watsco from $450.00 to $460.00 and gave the company a "hold" rating in a research report on Thursday, February 27th. StockNews.com cut shares of Watsco from a "hold" rating to a "sell" rating in a report on Friday. Robert W. Baird dropped their price objective on Watsco from $560.00 to $540.00 and set an "outperform" rating for the company in a research note on Thursday, April 24th. Finally, UBS Group decreased their target price on Watsco from $475.00 to $455.00 and set a "neutral" rating on the stock in a research note on Thursday, April 24th. One analyst has rated the stock with a sell rating, six have assigned a hold rating and one has given a buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $480.83.

Watsco Price Performance

WSO stock traded down $0.39 during mid-day trading on Friday, reaching $455.39. 247,231 shares of the company traded hands, compared to its average volume of 290,022. The company has a fifty day moving average price of $497.77 and a 200-day moving average price of $498.58. Watsco has a 52-week low of $439.08 and a 52-week high of $571.41. The company has a market capitalization of $18.40 billion, a P/E ratio of 34.37 and a beta of 1.00.

Watsco (NYSE:WSO - Get Free Report) last announced its quarterly earnings results on Wednesday, April 23rd. The construction company reported $1.93 earnings per share for the quarter, missing the consensus estimate of $2.29 by ($0.36). The company had revenue of $1.53 billion during the quarter, compared to analysts' expectations of $1.66 billion. Watsco had a net margin of 7.04% and a return on equity of 17.59%. Watsco's revenue for the quarter was down 2.2% compared to the same quarter last year. During the same quarter last year, the firm posted $2.17 earnings per share.

Hedge Funds Weigh In On Watsco

A number of hedge funds and other institutional investors have recently modified their holdings of WSO. Tudor Financial Inc. bought a new position in Watsco during the third quarter valued at approximately $588,000. Anchor Investment Management LLC increased its holdings in shares of Watsco by 500.0% in the third quarter. Anchor Investment Management LLC now owns 228 shares of the construction company's stock worth $112,000 after buying an additional 190 shares during the period. Tidal Investments LLC boosted its holdings in Watsco by 3.1% during the 3rd quarter. Tidal Investments LLC now owns 2,269 shares of the construction company's stock valued at $1,116,000 after acquiring an additional 69 shares during the period. Franklin Resources Inc. grew its position in Watsco by 5.6% during the 3rd quarter. Franklin Resources Inc. now owns 51,590 shares of the construction company's stock worth $25,645,000 after acquiring an additional 2,738 shares during the last quarter. Finally, Oddo BHF Asset Management Sas purchased a new position in shares of Watsco in the third quarter worth $1,332,000. 89.71% of the stock is currently owned by hedge funds and other institutional investors.

Watsco Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 30th. Shareholders of record on Tuesday, April 15th will be given a dividend of $3.00 per share. This is an increase from Watsco's previous quarterly dividend of $2.70. The ex-dividend date of this dividend is Tuesday, April 15th. This represents a $12.00 dividend on an annualized basis and a yield of 2.64%. Watsco's dividend payout ratio (DPR) is presently 92.24%.

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.