Zacks Research Equities Analysts Lower Earnings Estimates for Watsco, Inc. (NYSE:WSO)

Watsco, Inc. (NYSE:WSO) – Zacks Research lowered their Q1 2024 earnings estimates for Watsco in a note issued to investors on Monday, April 15th. Zacks Research analyst R. Department now forecasts that the construction company will earn $2.23 per share for the quarter, down from their prior estimate of $2.31. The consensus estimate for Watsco’s current full-year earnings is $14.17 per share. Zacks Research also issued estimates for Watsco’s Q2 2024 earnings at $4.85 EPS, Q4 2024 earnings at $2.20 EPS, Q1 2025 earnings at $2.97 EPS, Q4 2025 earnings at $3.29 EPS, Q1 2026 earnings at $3.59 EPS and FY2026 earnings at $17.96 EPS.

Separately, Robert W. Baird upped their target price on Watsco from $400.00 to $410.00 and gave the stock an “outperform” rating in a report on Wednesday, February 14th. One analyst has rated the stock with a sell rating, four have issued a hold rating and four have given a buy rating to the stock. According to MarketBeat, Watsco presently has a consensus rating of “Hold” and an average price target of $396.00.

Watsco Stock Down 2.3 %

Shares of NYSE WSO opened at $403.94 on Tuesday. Watsco has a 52-week low of $313.27 and a 52-week high of $447.49. The firm has a market capitalization of $15.96 billion, a price-to-earnings ratio of 29.57 and a beta of 0.90. The stock has a 50 day moving average price of $409.14 and a 200 day moving average price of $398.02. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.47 and a current ratio of 3.36.

Watsco (NYSE:WSO) last released its quarterly earnings data on Tuesday, February 13th. The construction company reported $2.06 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.50 by ($0.44). The company had revenue of $1.60 billion during the quarter, compared to analysts’ expectations of $1.65 billion. Watsco had a net margin of 7.36% and a return on equity of 21.36%. Watsco’s quarterly revenue was up 1.4% on a year-over-year basis. During the same period last year, the firm earned $2.35 earnings per share.

Institutional Investors Weigh In On Watsco

A number of hedge funds have recently made changes to their positions in WSO. Vanguard Group Inc. lifted its position in shares of Watsco by 0.4% during the first quarter. Vanguard Group Inc. now owns 3,325,958 shares of the construction company’s stock valued at $1,013,220,000 after buying an additional 14,122 shares during the last quarter. Kayne Anderson Rudnick Investment Management LLC lifted its position in Watsco by 2.0% during the first quarter. Kayne Anderson Rudnick Investment Management LLC now owns 1,670,785 shares of the construction company’s stock valued at $531,577,000 after acquiring an additional 32,734 shares during the last quarter. Moneta Group Investment Advisors LLC boosted its stake in Watsco by 105,561.2% in the fourth quarter. Moneta Group Investment Advisors LLC now owns 1,494,050 shares of the construction company’s stock valued at $372,616,000 after acquiring an additional 1,492,636 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its stake in Watsco by 0.7% in the third quarter. Charles Schwab Investment Management Inc. now owns 1,310,201 shares of the construction company’s stock valued at $476,973,000 after acquiring an additional 9,201 shares in the last quarter. Finally, Capital World Investors grew its holdings in Watsco by 0.3% in the first quarter. Capital World Investors now owns 1,127,943 shares of the construction company’s stock worth $343,617,000 after purchasing an additional 3,540 shares during the last quarter. 89.71% of the stock is currently owned by hedge funds and other institutional investors.

Watsco Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, April 30th. Shareholders of record on Monday, April 15th will be given a dividend of $2.70 per share. This represents a $10.80 annualized dividend and a yield of 2.67%. The ex-dividend date of this dividend is Friday, April 12th. This is a boost from Watsco’s previous quarterly dividend of $2.45. Watsco’s dividend payout ratio (DPR) is 79.06%.

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.