Q2 2024 EPS Estimates for Watsco, Inc. Lowered by Analyst (NYSE:WSO)

Watsco, Inc. (NYSE:WSO - Free Report) - Equities research analysts at William Blair cut their Q2 2024 earnings per share estimates for Watsco in a research report issued to clients and investors on Wednesday, April 24th. William Blair analyst R. Merkel now expects that the construction company will post earnings of $5.43 per share for the quarter, down from their prior 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.

A number of other research analysts have also recently issued reports on the company. Robert W. Baird lifted their price target on Watsco from $420.00 to $460.00 and gave the company an "outperform" rating in a report on Thursday. Stephens reissued an "overweight" rating and set 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 issued a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $404.25.

Watsco Price Performance

Shares of Watsco stock traded down $0.79 during trading on Friday, reaching $443.21. The company's stock had a trading volume of 277,099 shares, compared to its average volume of 347,443. The stock has a 50-day moving average price of $412.36 and a two-hundred day moving average price of $399.76. The company has a current ratio of 2.92, a quick ratio of 1.47 and a debt-to-equity ratio of 0.01. Watsco has a one year low of $315.17 and a one year high of $451.29. The stock has a market capitalization of $17.51 billion, a P/E ratio of 34.09 and a beta of 0.90.

Watsco (NYSE:WSO - Get Free Report) last released its quarterly earnings results on Wednesday, April 24th. The construction company reported $2.17 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.26 by ($0.09). Watsco had a net margin of 7.03% and a return on equity of 19.26%. The business had revenue of $1.56 billion during the quarter, compared to the consensus estimate of $1.59 billion. During the same period in the prior year, the firm earned $2.83 earnings per share. The business's quarterly revenue was up .9% compared to the same quarter last year.

Watsco Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, April 30th. Stockholders of record on Monday, April 15th will be paid a $2.70 dividend. The ex-dividend date of this dividend is Friday, April 12th. 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%. Watsco's dividend payout ratio is 83.08%.

Hedge Funds Weigh In On Watsco

Several institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. grew its position in shares of Watsco by 1.7% in the 4th quarter. Vanguard Group Inc. now owns 3,265,589 shares of the construction company's stock valued at $1,399,207,000 after purchasing an additional 55,119 shares during the period. Kayne Anderson Rudnick Investment Management LLC boosted its position in Watsco by 0.5% during the 3rd quarter. Kayne Anderson Rudnick Investment Management LLC now owns 1,655,946 shares of the construction company's stock worth $625,484,000 after acquiring an additional 7,723 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its position in Watsco by 0.7% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 1,310,201 shares of the construction company's stock worth $476,973,000 after acquiring an additional 9,201 shares during the last quarter. Blair William & Co. IL boosted its position in Watsco by 0.7% during the 3rd quarter. Blair William & Co. IL now owns 770,476 shares of the construction company's stock worth $291,024,000 after acquiring 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 worth $245,013,000 after acquiring an additional 16,589 shares during the last quarter. 89.71% of the stock is currently owned by institutional investors and hedge funds.

About Watsco

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.