Zacks Research Issues Positive Forecast for Watsco Earnings

Watsco, Inc. (NYSE:WSO) – Zacks Research increased their Q3 2026 EPS estimates for shares of Watsco in a report issued on Tuesday, May 19th. Zacks Research analyst Team now anticipates that the construction company will earn $4.29 per share for the quarter, up from their previous forecast of $4.22. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for Watsco’s current full-year earnings is $12.70 per share. Zacks Research also issued estimates for Watsco’s FY2026 earnings at $12.56 EPS, Q1 2027 earnings at $1.92 EPS, Q2 2027 earnings at $4.75 EPS, Q3 2027 earnings at $4.69 EPS and Q4 2027 earnings at $2.34 EPS.

Several other analysts have also commented on WSO. Wall Street Zen raised Watsco from a “sell” rating to a “hold” rating in a report on Saturday, May 2nd. Stephens boosted their price target on Watsco from $475.00 to $485.00 and gave the company an “overweight” rating in a report on Wednesday, April 29th. JPMorgan Chase & Co. upped their price objective on Watsco from $370.00 to $400.00 and gave the stock a “neutral” rating in a research report on Thursday, February 19th. Finally, Mizuho set a $425.00 price objective on shares of Watsco in a research note on Wednesday, February 18th. One equities research analyst has rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $399.83.

Watsco Stock Performance

NYSE WSO opened at $378.29 on Friday. The stock has a 50-day simple moving average of $399.47 and a two-hundred day simple moving average of $381.15. The firm has a market capitalization of $15.38 billion, a P/E ratio of 31.39 and a beta of 1.12. Watsco has a fifty-two week low of $323.05 and a fifty-two week high of $494.94.

Watsco (NYSE:WSO) last issued its earnings results on Tuesday, April 28th. The construction company reported $1.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.73 by $0.14. Watsco had a net margin of 6.85% and a return on equity of 15.31%. The firm had revenue of $1.53 billion during the quarter, compared to analysts’ expectations of $1.49 billion. During the same quarter last year, the company posted $1.93 earnings per share. The firm’s revenue was up .1% compared to the same quarter last year.

Watsco Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, April 30th. Shareholders of record on Thursday, April 16th were issued a $3.30 dividend. The ex-dividend date of this dividend was Thursday, April 16th. This is an increase from Watsco’s previous quarterly dividend of $3.00. This represents a $13.20 annualized dividend and a yield of 3.5%. Watsco’s dividend payout ratio is 109.54%.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. CWM LLC lifted its position in shares of Watsco by 3.8% during the 4th quarter. CWM LLC now owns 710 shares of the construction company’s stock valued at $239,000 after buying an additional 26 shares in the last quarter. Assetmark Inc. increased its holdings in Watsco by 2.7% in the 1st quarter. Assetmark Inc. now owns 1,115 shares of the construction company’s stock worth $406,000 after acquiring an additional 29 shares in the last quarter. Massachusetts Financial Services Co. MA raised its position in Watsco by 2.0% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 1,559 shares of the construction company’s stock worth $525,000 after acquiring an additional 30 shares during the period. Northwestern Mutual Investment Management Company LLC lifted its holdings in Watsco by 0.4% during the fourth quarter. Northwestern Mutual Investment Management Company LLC now owns 7,814 shares of the construction company’s stock valued at $2,633,000 after purchasing an additional 34 shares in the last quarter. Finally, Profund Advisors LLC grew its position in shares of Watsco by 4.7% in the third quarter. Profund Advisors LLC now owns 805 shares of the construction company’s stock valued at $325,000 after purchasing an additional 36 shares during the period. 89.71% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Watsco

Here are the key news stories impacting Watsco this week:

• Positive Sentiment: Zacks Research raised some near-term estimates, including FY2026 EPS to $12.56, Q3 2026 EPS to $4.29, Q1 2027 EPS to $1.92, Q2 2027 EPS to $4.75, and Q3 2027 EPS to $4.69.
• Neutral Sentiment: Despite the estimate changes, Zacks Research kept a Hold rating on Watsco, suggesting a neutral stance on the shares.
• Negative Sentiment: Analysts lowered longer-term profit expectations, including FY2027 EPS to $13.70, FY2028 EPS to $14.93, Q4 2027 EPS to $2.34, and Q1 2028 EPS to $1.93, which may raise concerns about earnings momentum and valuation.

About Watsco

Watsco, Inc is the largest distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment, parts and supplies in the United States. Headquartered in Miami, Florida, the company operates a network of more than 600 branches across the continental U.S., Canada and Puerto Rico. Watsco serves residential and commercial contractors by providing essential components for climate control systems, including air conditioners, furnaces, heat pumps, coils, refrigerants, controls and electrical and piping supplies.

Founded in 1947, Watsco has grown from a single regional distributor into an industry leader through a combination of organic expansion, acquisitions and strategic partnerships with original equipment manufacturers such as Carrier, Trane, Goodman and Lennox.