Watsco Inc (NYSE:WSO) – Jefferies Financial Group lowered their FY2019 earnings per share estimates for Watsco in a research note issued on Thursday, October 17th. Jefferies Financial Group analyst S. Volkmann now expects that the construction company will post earnings per share of $6.40 for the year, down from their prior estimate of $6.45. Jefferies Financial Group also issued estimates for Watsco’s Q1 2020 earnings at $0.90 EPS, Q2 2020 earnings at $2.60 EPS, Q3 2020 earnings at $2.35 EPS, Q4 2020 earnings at $1.09 EPS, FY2021 earnings at $7.10 EPS and FY2022 earnings at $7.30 EPS.
Watsco (NYSE:WSO) last posted its quarterly earnings data on Thursday, October 17th. The construction company reported $2.20 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $2.23 by ($0.03). The company had revenue of $1.39 billion for the quarter, compared to analysts’ expectations of $1.38 billion. Watsco had a net margin of 5.29% and a return on equity of 15.41%. The firm’s revenue was up 7.6% on a year-over-year basis. During the same period in the prior year, the company earned $2.11 earnings per share.
Other equities analysts also recently issued reports about the company. JPMorgan Chase & Co. increased their target price on Watsco from $132.00 to $138.00 and gave the stock an “underweight” rating in a research note on Thursday, October 10th. Zacks Investment Research downgraded Watsco from a “hold” rating to a “sell” rating and set a $167.00 target price for the company. in a research note on Saturday, August 3rd. Robert W. Baird increased their target price on Watsco from $160.00 to $175.00 and gave the stock a “neutral” rating in a research note on Friday, October 18th. Buckingham Research cut their target price on Watsco from $165.00 to $164.00 and set a “neutral” rating for the company in a research note on Friday, October 18th. Finally, Morgan Stanley increased their target price on Watsco from $145.00 to $158.00 and gave the stock an “equal weight” rating in a research note on Monday. Two equities research analysts have rated the stock with a sell rating and three have assigned a hold rating to the stock. The company currently has an average rating of “Hold” and a consensus price target of $160.40.
WSO opened at $176.98 on Monday. The business has a 50 day moving average price of $167.00 and a two-hundred day moving average price of $160.82. The company has a quick ratio of 1.25, a current ratio of 2.92 and a debt-to-equity ratio of 0.14. The company has a market cap of $6.60 billion, a PE ratio of 27.27, a P/E/G ratio of 2.11 and a beta of 0.85. Watsco has a 52 week low of $131.88 and a 52 week high of $178.29.
Hedge funds have recently modified their holdings of the company. Quantamental Technologies LLC purchased a new position in shares of Watsco during the 2nd quarter worth approximately $34,000. Cedar Wealth Management LLC purchased a new position in Watsco in the 2nd quarter valued at approximately $38,000. Heritage Wealth Advisors increased its stake in Watsco by 776.7% in the 2nd quarter. Heritage Wealth Advisors now owns 263 shares of the construction company’s stock valued at $43,000 after purchasing an additional 233 shares in the last quarter. Advisory Services Network LLC increased its stake in Watsco by 54.2% in the 2nd quarter. Advisory Services Network LLC now owns 273 shares of the construction company’s stock valued at $45,000 after purchasing an additional 96 shares in the last quarter. Finally, Meeder Asset Management Inc. purchased a new position in Watsco in the 2nd quarter valued at approximately $108,000. 77.10% of the stock is owned by institutional investors and hedge funds.
The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 31st. Stockholders of record on Tuesday, October 15th will be paid a dividend of $1.60 per share. This represents a $6.40 dividend on an annualized basis and a dividend yield of 3.62%. The ex-dividend date of this dividend is Friday, October 11th. Watsco’s dividend payout ratio (DPR) is 98.61%.
Watsco Company Profile
Watsco, Inc, together with its subsidiaries, distributes air conditioning, heating, and refrigeration equipment; and related parts and supplies in the United States, Canada, Mexico, and Puerto Rico. It offers residential ducted and ductless air conditioners; gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment.
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