William Blair Research Analysts Decrease Earnings Estimates for Watsco, Inc. (NYSE:WSO)

Watsco, Inc. (NYSE:WSO) – Analysts at William Blair reduced their Q2 2024 earnings per share (EPS) estimates for shares of Watsco in a report released on Wednesday, April 24th. William Blair analyst R. Merkel now anticipates that the construction company will post earnings per share of $5.43 for the quarter, down from their previous forecast of $5.48. The consensus estimate for Watsco’s current full-year earnings is $14.19 per share. William Blair also issued estimates for Watsco’s Q3 2024 earnings at $5.32 EPS and Q4 2024 earnings at $2.51 EPS.

Watsco (NYSE:WSO) last posted its quarterly earnings data on Wednesday, April 24th. The construction company reported $2.17 earnings per share for the quarter, missing the consensus estimate of $2.26 by ($0.09). Watsco had a return on equity of 19.26% and a net margin of 7.03%. The company had revenue of $1.56 billion during the quarter, compared to the consensus estimate of $1.59 billion. During the same quarter last year, the company posted $2.83 earnings per share. The firm’s revenue for the quarter was up .9% on a year-over-year basis.

WSO has been the subject of several other reports. Robert W. Baird increased their target price on Watsco from $420.00 to $460.00 and gave the company an “outperform” rating in a research note on Thursday. Stephens reiterated an “overweight” rating and issued a $500.00 price objective on shares of Watsco in a report on Thursday. One analyst has rated the stock with a sell rating, four have issued a hold rating and three have given a buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $404.25.

Watsco Price Performance

Shares of NYSE:WSO opened at $443.21 on Friday. The company’s fifty day moving average price is $412.36 and its 200-day moving average price is $399.76. The company has a debt-to-equity ratio of 0.01, a current ratio of 2.92 and a quick ratio of 1.47. The firm has a market capitalization of $17.51 billion, a price-to-earnings ratio of 34.09 and a beta of 0.90. Watsco has a one year low of $315.17 and a one year high of $451.29.

Institutional Investors Weigh In On Watsco

A number of hedge funds and other institutional investors have recently modified their holdings of WSO. Vanguard Group Inc. increased its stake in Watsco by 1.7% in the 4th quarter. Vanguard Group Inc. now owns 3,265,589 shares of the construction company’s stock worth $1,399,207,000 after purchasing an additional 55,119 shares during the period. Kayne Anderson Rudnick Investment Management LLC increased its stake in shares of Watsco by 0.5% in the third quarter. Kayne Anderson Rudnick Investment Management LLC now owns 1,655,946 shares of the construction company’s stock worth $625,484,000 after buying an additional 7,723 shares during the period. Charles Schwab Investment Management Inc. increased its stake in shares of 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 worth $476,973,000 after buying an additional 9,201 shares during the period. Blair William & Co. IL raised its holdings in Watsco by 0.7% during the 3rd quarter. Blair William & Co. IL now owns 770,476 shares of the construction company’s stock valued at $291,024,000 after buying an additional 4,997 shares during the last quarter. Finally, Wellington Management Group LLP boosted its position in Watsco by 2.6% during the 3rd quarter. Wellington Management Group LLP now owns 648,662 shares of the construction company’s stock valued at $245,013,000 after buying an additional 16,589 shares during the period. Institutional investors own 89.71% of the company’s stock.

Watsco Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 30th. Stockholders of record on Monday, April 15th will be paid a dividend of $2.70 per share. This is a boost from Watsco’s previous quarterly dividend of $2.45. This represents a $10.80 dividend on an annualized basis and a dividend yield of 2.44%. The ex-dividend date of this dividend is Friday, April 12th. Watsco’s dividend payout ratio (DPR) is 83.08%.

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.