Zacks Research Has Strong Estimate for Watsco Q1 Earnings

Watsco, Inc. (NYSE:WSO - Free Report) - Zacks Research lifted their Q1 2025 EPS estimates for shares of Watsco in a report released on Tuesday, March 11th. Zacks Research analyst R. Department now forecasts that the construction company will earn $2.27 per share for the quarter, up from their previous forecast of $2.25. The consensus estimate for Watsco's current full-year earnings is $14.62 per share. Zacks Research also issued estimates for Watsco's Q3 2026 earnings at $5.32 EPS, Q4 2026 earnings at $2.85 EPS and FY2026 earnings at $15.93 EPS.

Watsco (NYSE:WSO - Get Free Report) last posted its quarterly earnings data on Tuesday, February 18th. The construction company reported $2.37 earnings per share for the quarter, topping analysts' consensus estimates 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 net margin of 7.04% and a return on equity of 17.59%.

A number of other brokerages have also commented on WSO. Loop Capital raised their target price on shares of Watsco from $450.00 to $460.00 and gave the stock a "hold" rating in a research report on Thursday, February 27th. Northcoast Research assumed coverage on shares of Watsco in a research report on Friday, November 22nd. They set a "neutral" rating on the stock. Robert W. Baird raised their target price on shares of Watsco from $540.00 to $560.00 and gave the stock an "outperform" rating in a research report on Wednesday, February 19th. Finally, Raymond James initiated coverage on shares of Watsco in a report on Friday, January 17th. They set a "market perform" rating on the stock. Four investment analysts have rated the stock with a hold rating and two have assigned a buy rating to the stock. According to MarketBeat, Watsco has a consensus rating of "Hold" and an average price target of $486.25.

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Watsco Price Performance

Shares of NYSE:WSO traded down $2.04 during trading on Friday, reaching $508.71. 148,986 shares of the company were exchanged, compared to its average volume of 247,921. The firm has a market capitalization of $20.55 billion, a PE ratio of 38.39 and a beta of 0.92. The business's fifty day simple moving average is $490.37 and its 200-day simple moving average is $495.62. Watsco has a 12-month low of $396.82 and a 12-month high of $571.42.

Institutional Investors Weigh In On Watsco

Several institutional investors have recently bought and sold shares of WSO. Assetmark Inc. boosted its stake in Watsco by 6.4% in the third quarter. Assetmark Inc. now owns 612 shares of the construction company's stock valued at $301,000 after acquiring an additional 37 shares in the last quarter. Crossmark Global Holdings Inc. lifted its stake in shares of Watsco by 16.0% during the third quarter. Crossmark Global Holdings Inc. now owns 2,510 shares of the construction company's stock worth $1,234,000 after buying an additional 347 shares during the period. Ashton Thomas Securities LLC acquired a new stake in shares of Watsco during the third quarter worth $43,000. GSA Capital Partners LLP acquired a new stake in shares of Watsco during the third quarter worth $962,000. Finally, Sumitomo Mitsui Trust Group Inc. lifted its stake in shares of Watsco by 1.7% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 64,758 shares of the construction company's stock worth $31,853,000 after buying an additional 1,074 shares during the period. 89.71% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at Watsco

In other Watsco news, EVP Barry S. Logan sold 10,998 shares of the firm's stock in a transaction that occurred on Wednesday, December 18th. The shares were sold at an average price of $508.21, for a total value of $5,589,293.58. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 12.86% of the stock is owned by insiders.

Watsco Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, January 31st. Shareholders of record on Friday, January 17th were paid a $2.70 dividend. The ex-dividend date of this dividend was Friday, January 17th. This represents a $10.80 annualized dividend and a yield of 2.12%. Watsco's dividend payout ratio (DPR) is 81.51%.

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.