Research Analysts Set Expectations for Watsco Q2 Earnings

Watsco, Inc. (NYSE:WSO - Free Report) - Analysts at Zacks Research lifted their Q2 2025 earnings per share (EPS) estimates for shares of Watsco in a report issued on Tuesday, March 11th. Zacks Research analyst R. Department now anticipates that the construction company will earn $4.78 per share for the quarter, up from their previous estimate of $4.75. The consensus estimate for Watsco's current full-year earnings is $14.62 per share. Zacks Research also issued estimates for Watsco's Q4 2025 earnings at $2.51 EPS, Q1 2026 earnings at $2.48 EPS, Q2 2026 earnings at $5.29 EPS and FY2027 earnings at $17.26 EPS.

WSO has been the topic of several other reports. Northcoast Research started coverage on Watsco in a research note on Friday, November 22nd. They issued a "neutral" rating on the stock. Raymond James started coverage on Watsco in a research note on Friday, January 17th. They issued a "market perform" rating on the stock. Robert W. Baird raised their price objective on Watsco from $540.00 to $560.00 and gave the company an "outperform" rating in a research note on Wednesday, February 19th. Finally, Loop Capital raised their price objective on Watsco from $450.00 to $460.00 and gave the company a "hold" rating in a research note on Thursday, February 27th. Four equities research analysts have rated the stock with a hold rating and two have issued a buy rating to the stock. Based on data from MarketBeat.com, Watsco currently has an average rating of "Hold" and a consensus price target of $486.25.

Watsco Price Performance

NYSE:WSO traded up $2.37 during trading hours on Thursday, hitting $511.27. The company's stock had a trading volume of 176,183 shares, compared to its average volume of 248,333. The stock has a fifty day simple moving average of $489.58 and a 200-day simple moving average of $495.31. The company has a market capitalization of $20.66 billion, a P/E ratio of 38.59 and a beta of 0.92. Watsco has a twelve month low of $396.82 and a twelve month high of $571.42.

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Watsco (NYSE:WSO - Get Free Report) last released its earnings results on Tuesday, February 18th. The construction company reported $2.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.13 by $0.24. The company had revenue of $1.75 billion for the quarter, compared to analyst estimates of $1.67 billion. Watsco had a return on equity of 17.59% and a net margin of 7.04%.

Hedge Funds Weigh In On Watsco

A number of hedge funds and other institutional investors have recently made changes to their positions in WSO. Assetmark Inc. lifted its stake in shares of Watsco by 6.4% in the third quarter. Assetmark Inc. now owns 612 shares of the construction company's stock worth $301,000 after acquiring an additional 37 shares during the period. Crossmark Global Holdings Inc. lifted its stake in shares of Watsco by 16.0% in the third quarter. Crossmark Global Holdings Inc. now owns 2,510 shares of the construction company's stock worth $1,234,000 after acquiring an additional 347 shares during the period. Ashton Thomas Securities LLC acquired a new position in shares of Watsco in the third quarter worth approximately $43,000. Venturi Wealth Management LLC lifted its stake in shares of Watsco by 9.6% in the third quarter. Venturi Wealth Management LLC now owns 821 shares of the construction company's stock worth $404,000 after acquiring an additional 72 shares during the period. Finally, GSA Capital Partners LLP acquired a new position in shares of Watsco in the third quarter worth approximately $962,000. 89.71% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at Watsco

In other news, EVP Barry S. Logan sold 10,998 shares of the business's stock in a transaction dated Wednesday, December 18th. The stock was sold at an average price of $508.21, for a total transaction of $5,589,293.58. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Company insiders own 12.86% of the company's stock.

Watsco Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, January 31st. Stockholders of record on Friday, January 17th were issued a dividend of $2.70 per share. This represents a $10.80 annualized dividend and a dividend yield of 2.11%. The ex-dividend date of this dividend was Friday, January 17th. Watsco's dividend payout ratio (DPR) is currently 81.51%.

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.