Zacks Research Has Bearish Outlook for Watsco Q4 Earnings

Watsco, Inc. (NYSE:WSO) – Equities research analysts at Zacks Research reduced their Q4 2024 earnings per share estimates for shares of Watsco in a report issued on Wednesday, November 13th. Zacks Research analyst R. Department now forecasts that the construction company will post earnings of $1.97 per share for the quarter, down from their previous estimate 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.

A number of other analysts have also commented on WSO. JPMorgan Chase & Co. boosted their price target on Watsco from $420.00 to $425.00 and gave the company a “neutral” rating in a report on Wednesday, July 31st. Robert W. Baird dropped their target price on Watsco from $550.00 to $540.00 and set an “outperform” rating on the stock in a research report on Thursday, October 24th.

Watsco Trading Up 1.2 %

WSO opened at $527.17 on Monday. The stock has a market capitalization of $21.29 billion, a P/E ratio of 40.74 and a beta of 0.88. Watsco has a 12 month low of $373.33 and a 12 month high of $545.49. The firm’s fifty day simple moving average is $493.90 and its 200 day simple moving average is $483.20.

Watsco (NYSE:WSO) last announced its quarterly 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 net margin of 6.99% and a return on equity of 17.77%. The company had revenue of $2.16 billion during the quarter, compared to the consensus estimate of $2.24 billion. During the same period in the previous year, the firm posted $4.35 EPS. The business’s quarterly revenue was up 1.6% compared to the same quarter last year.

Institutional Trading of Watsco

A number of hedge funds and other institutional investors have recently modified their holdings of WSO. EntryPoint Capital LLC increased its holdings in Watsco by 100.0% during the first quarter. EntryPoint Capital LLC now owns 58 shares of the construction company’s stock worth $25,000 after buying an additional 29 shares during the last quarter. Quarry LP acquired a new stake in Watsco in the second quarter valued at $26,000. Tortoise Investment Management LLC grew its position in shares of Watsco by 76.2% in the 2nd quarter. Tortoise Investment Management LLC now owns 74 shares of the construction company’s stock valued at $34,000 after acquiring an additional 32 shares during the period. Ashton Thomas Securities LLC acquired a new position in shares of Watsco during the 3rd quarter worth about $43,000. Finally, Massmutual Trust Co. FSB ADV raised its holdings in shares of Watsco by 30.6% in the 3rd quarter. Massmutual Trust Co. FSB ADV now owns 94 shares of the construction company’s stock valued at $46,000 after purchasing an additional 22 shares during the period. Institutional investors and hedge funds own 89.71% of the company’s stock.

Watsco Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 31st. Stockholders of record on Wednesday, October 16th were paid a dividend of $2.70 per share. The ex-dividend date of this dividend was Wednesday, October 16th. This represents a $10.80 dividend on an annualized basis and a dividend yield of 2.05%. Watsco’s dividend payout ratio is 83.46%.

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.