Zacks Research Comments on Watsco, Inc.’s Q3 2024 Earnings (NYSE:WSO)

Watsco, Inc. (NYSE:WSO) – Equities researchers at Zacks Research upped their Q3 2024 EPS estimates for Watsco in a report issued on Monday, April 15th. Zacks Research analyst R. Department now anticipates that the construction company will post earnings per share of $4.80 for the quarter, up from their prior estimate of $4.69. The consensus estimate for Watsco’s current full-year earnings is $14.19 per share. Zacks Research also issued estimates for Watsco’s FY2024 earnings at $14.08 EPS, Q2 2025 earnings at $4.86 EPS, Q3 2025 earnings at $5.00 EPS and FY2025 earnings at $16.13 EPS.

Separately, Robert W. Baird raised their price objective on shares of Watsco from $400.00 to $410.00 and gave the stock an “outperform” rating in a report on Wednesday, February 14th. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $396.00.

Watsco Stock Performance

Watsco stock opened at $401.84 on Wednesday. Watsco has a 12-month low of $314.87 and a 12-month high of $447.49. The company has a market capitalization of $15.87 billion, a price-to-earnings ratio of 29.42 and a beta of 0.90. The company has a debt-to-equity ratio of 0.01, a current ratio of 3.36 and a quick ratio of 1.47. The firm’s fifty day moving average price is $408.99 and its 200 day moving average price is $398.05.

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

Watsco Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 30th. Investors of record on Monday, April 15th will be given a dividend of $2.70 per share. The ex-dividend date is Friday, April 12th. This is an increase from Watsco’s previous quarterly dividend of $2.45. This represents a $10.80 dividend on an annualized basis and a yield of 2.69%. Watsco’s payout ratio is presently 79.06%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Wetzel Investment Advisors Inc. bought a new stake in Watsco in the fourth quarter worth approximately $25,000. First PREMIER Bank bought a new stake in Watsco in the first quarter worth approximately $25,000. Contravisory Investment Management Inc. acquired a new stake in shares of Watsco in the fourth quarter worth $26,000. Cullen Frost Bankers Inc. acquired a new stake in shares of Watsco in the fourth quarter worth $28,000. Finally, Rise Advisors LLC acquired a new stake in shares of Watsco in the fourth quarter worth $30,000. 89.71% of the stock is owned by hedge funds and other institutional investors.

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.