Watsco (NYSE:WSO) Issues Quarterly Earnings Results

Key Points

• Watsco reported quarterly EPS of $3.77, missing the $4.10 analyst consensus by $0.33, while revenue of $2.22 billion slightly exceeded expectations of $2.21 billion.
• Shares fell 5.3% to open at $305.97, near the lower end of their 12-month range. Analysts largely maintain a “Hold” view, with a consensus price target of $373.62.
• Watsco declared a quarterly dividend of $3.30 per share, equal to $13.20 annually and a 4.3% yield; its payout ratio stands at 114.48%.

Watsco (NYSE:WSO - Get Free Report) issued its earnings results on Tuesday. The construction company reported $3.77 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.10 by ($0.33), FiscalAI reports. The business had revenue of $2.22 billion for the quarter, compared to analysts' expectations of $2.21 billion. Watsco had a return on equity of 14.40% and a net margin of 6.53%.

Watsco Trading Down 5.3%

Shares of Watsco stock opened at $305.97 on Tuesday. The company has a 50-day moving average of $307.02 and a two-hundred day moving average of $367.03. Watsco has a 12-month low of $277.34 and a 12-month high of $459.00. The stock has a market cap of $12.62 billion, a PE ratio of 26.54 and a beta of 1.06.

Watsco Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Friday, October 16th will be issued a $3.30 dividend. The ex-dividend date of this dividend is Friday, October 16th. This represents a $13.20 dividend on an annualized basis and a yield of 4.3%. Watsco's dividend payout ratio (DPR) is 114.48%.

Analysts Set New Price Targets

WSO has been the topic of a number of analyst reports. DA Davidson decreased their price target on Watsco from $385.00 to $330.00 and set a "neutral" rating on the stock in a research note on Thursday, July 30th. Robert W. Baird set a $400.00 price objective on Watsco in a research report on Thursday, July 30th. Morgan Stanley cut their price objective on Watsco from $370.00 to $330.00 and set an "equal weight" rating for the company in a research report on Monday, October 12th. Weiss Ratings downgraded Watsco from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday, October 6th. Finally, Mizuho decreased their target price on shares of Watsco from $350.00 to $325.00 and set a "neutral" rating on the stock in a research report on Thursday, October 15th. Two investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat, Watsco has an average rating of "Hold" and a consensus price target of $373.62.

Watsco Company Profile

Watsco, Inc NYSE: WSO is a distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment and related products. The company supplies residential and light commercial air-conditioning and heating systems, refrigeration equipment, replacement parts, and other supplies used by contractors and service professionals.

Watsco distributes products from leading HVAC/R manufacturers, including equipment and components such as air conditioners, heat pumps, furnaces, air handlers, thermostats, controls, motors and indoor air-quality products.

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