Zacks Research Has Pessimistic Outlook of Watsco Q4 Earnings

Watsco, Inc. (NYSE:WSO - Free Report) - Research analysts at Zacks Research reduced their Q4 2024 earnings estimates for Watsco in a research note issued to investors on Wednesday, November 13th. Zacks Research analyst R. Department now forecasts that the construction company will earn $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 - Get Free Report) last announced its earnings results on Wednesday, October 23rd. The construction company reported $4.22 earnings per share for the quarter, missing analysts' consensus estimates of $4.73 by ($0.51). Watsco had a return on equity of 17.77% and a net margin of 6.99%. The company had revenue of $2.16 billion during the quarter, compared to analyst estimates of $2.24 billion. During the same period in the previous year, the company posted $4.35 earnings per share. Watsco's revenue for the quarter was up 1.6% on a year-over-year basis.

Several other research firms have also recently commented on WSO. JPMorgan Chase & Co. boosted their target price on Watsco from $420.00 to $425.00 and gave the company a "neutral" rating in a research note on Wednesday, July 31st. Robert W. Baird cut their price objective on shares of Watsco from $550.00 to $540.00 and set an "outperform" rating on the stock in a research report on Thursday, October 24th.

Watsco Price Performance

WSO stock opened at $520.74 on Monday. The stock has a market capitalization of $21.03 billion, a P/E ratio of 40.24 and a beta of 0.88. Watsco has a fifty-two week low of $373.33 and a fifty-two week high of $545.49. The business has a 50-day moving average of $492.47 and a 200-day moving average of $482.70.

Watsco Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, October 31st. Shareholders of record on Wednesday, October 16th were paid a $2.70 dividend. The ex-dividend date was Wednesday, October 16th. This represents a $10.80 dividend on an annualized basis and a yield of 2.07%. Watsco's dividend payout ratio is 83.46%.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in WSO. FMR LLC increased its holdings in Watsco by 10.6% during the third quarter. FMR LLC now owns 3,624,159 shares of the construction company's stock worth $1,782,651,000 after buying an additional 346,470 shares during the last quarter. Vanguard Group Inc. grew its position 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 acquiring an additional 146,305 shares during the period. Charles Schwab Investment Management Inc. increased its stake in shares of Watsco by 5.2% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 1,252,822 shares of the construction company's stock worth $616,357,000 after purchasing an additional 62,041 shares during the last quarter. State Street Corp raised its holdings in shares of Watsco by 5.9% in the 3rd quarter. State Street Corp now owns 1,173,762 shares of the construction company's stock valued at $577,350,000 after purchasing an additional 65,846 shares during the period. Finally, Blair William & Co. IL raised its holdings in shares of Watsco by 1.2% in the 2nd quarter. Blair William & Co. IL now owns 801,152 shares of the construction company's stock valued at $371,126,000 after purchasing an additional 9,141 shares during the period. Institutional investors and hedge funds own 89.71% of the company's stock.

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.