Watsco Stock Earnings Estimates Increased by Zacks Research

Key Points

• Zacks Research raised Watsco’s Q1 2027 earnings estimate to $1.94 per share from $1.93 and projects Q1 2028 earnings of $2.07 per share; it maintains a “Hold” rating.
• Analyst sentiment remains cautious, with two “Buy” ratings and eight “Hold” ratings. Watsco’s consensus rating is “Hold,” with an average price target of $373.62, although several firms recently lowered their targets.
• Watsco’s latest quarterly results missed expectations, reporting $4.00 EPS versus $4.41 expected and revenue of $2.10 billion versus $2.14 billion expected. The company also announced a $3.30 quarterly dividend, representing a 4.0% yield, though its payout ratio is elevated at 114.48%.

Watsco, Inc. (NYSE:WSO - Free Report) - Zacks Research increased their Q1 2027 earnings estimates for shares of Watsco in a report released on Thursday, October 22nd. Zacks Research analyst Team now expects that the construction company will post earnings of $1.94 per share for the quarter, up from their previous estimate of $1.93. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Watsco's current full-year earnings is $12.19 per share. Zacks Research also issued estimates for Watsco's Q1 2028 earnings at $2.07 EPS.

Other equities analysts also recently issued research reports about the stock. Mizuho dropped their price objective on shares of Watsco from $350.00 to $325.00 and set a "neutral" rating for the company in a research note on Thursday, October 15th. Stephens reaffirmed an "overweight" rating and set a $485.00 target price on shares of Watsco in a research note on Monday, August 17th. Morgan Stanley lowered their price target on shares of Watsco from $370.00 to $330.00 and set an "equal weight" rating for the company in a report on Monday, October 12th. DA Davidson dropped their price target on Watsco from $385.00 to $330.00 and set a "neutral" rating for the company in a research note on Thursday, July 30th. Finally, Weiss Ratings downgraded Watsco from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday, October 6th. Two research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $373.62.

Watsco Stock Performance

Shares of WSO opened at $327.64 on Friday. Watsco has a 52-week low of $277.34 and a 52-week high of $459.00. The business's fifty day moving average is $306.99 and its 200-day moving average is $358.70. The firm has a market cap of $13.52 billion, a price-to-earnings ratio of 28.42 and a beta of 1.06.

Watsco (NYSE:WSO - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The construction company reported $4.00 EPS for the quarter, missing analysts' consensus estimates of $4.41 by ($0.41). The business had revenue of $2.10 billion for the quarter, compared to the consensus estimate of $2.14 billion. Watsco had a return on equity of 14.40% and a net margin of 6.53%. Watsco's revenue was up 2.1% compared to the same quarter last year. During the same period in the prior year, the business posted $4.52 earnings per share.

Watsco Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Friday, October 16th will be given a dividend of $3.30 per share. This represents a $13.20 dividend on an annualized basis and a dividend yield of 4.0%. The ex-dividend date is Friday, October 16th. Watsco's payout ratio is presently 114.48%.

Hedge Funds Weigh In On Watsco

A number of institutional investors and hedge funds have recently made changes to their positions in WSO. Assetmark Inc. increased its position in shares of Watsco by 2.7% during the first 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. Crossmark Global Holdings Inc. raised its holdings in shares of Watsco by 2.7% in the 3rd quarter. Crossmark Global Holdings Inc. now owns 1,689 shares of the construction company's stock worth $511,000 after acquiring an additional 45 shares during the last quarter. Bessemer Group Inc. lifted its position in Watsco by 10.5% in the 1st quarter. Bessemer Group Inc. now owns 496 shares of the construction company's stock valued at $181,000 after acquiring an additional 47 shares in the last quarter. Root Financial Partners LLC lifted its position in Watsco by 15.9% in the 1st quarter. Root Financial Partners LLC now owns 357 shares of the construction company's stock valued at $130,000 after acquiring an additional 49 shares in the last quarter. Finally, Intrinsic Value Partners LLC lifted its position in Watsco by 2.9% in the 1st quarter. Intrinsic Value Partners LLC now owns 1,789 shares of the construction company's stock valued at $651,000 after acquiring an additional 50 shares in the last quarter. Institutional investors own 89.71% of the company's stock.

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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