Watsco (NYSE:WSO) Releases Quarterly Earnings Results, Misses Expectations By $0.32 EPS

Key Points

• Watsco reported quarterly earnings of $4.52 per share, missing consensus estimates by $0.32, with revenues at $2.06 billion compared to expectations of $2.24 billion.
• The company declared a quarterly dividend of $3.00 per share, which will be paid on July 31, reflecting an annualized yield of 2.70%.
• Analysts have a consensus rating of "Hold" for Watsco's stock, with the average price target set at $484.17.

Watsco (NYSE:WSO - Get Free Report) issued its quarterly earnings results on Wednesday. The construction company reported $4.52 earnings per share for the quarter, missing the consensus estimate of $4.84 by ($0.32), Zacks reports. The company had revenue of $2.06 billion for the quarter, compared to analysts' expectations of $2.24 billion. Watsco had a return on equity of 17.13% and a net margin of 6.98%. Watsco's revenue for the quarter was down 3.6% compared to the same quarter last year. During the same quarter last year, the company earned $4.49 EPS.

Watsco Stock Performance

Shares of WSO stock traded down $20.56 during mid-day trading on Wednesday, hitting $444.26. 1,027,183 shares of the stock were exchanged, compared to its average volume of 273,756. The stock's fifty day simple moving average is $452.61 and its two-hundred day simple moving average is $477.10. Watsco has a 12-month low of $418.31 and a 12-month high of $571.41. The stock has a market capitalization of $18.00 billion, a price-to-earnings ratio of 34.15 and a beta of 1.04.

Watsco Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 31st. Shareholders of record on Wednesday, July 16th will be paid a $3.00 dividend. The ex-dividend date of this dividend is Wednesday, July 16th. This represents a $12.00 annualized dividend and a yield of 2.70%. Watsco's dividend payout ratio is presently 92.24%.

Institutional Trading of Watsco

A hedge fund recently raised its stake in Watsco stock. Empowered Funds LLC boosted its position in shares of Watsco, Inc. (NYSE:WSO - Free Report) by 4.1% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 5,927 shares of the construction company's stock after buying an additional 232 shares during the period. Empowered Funds LLC's holdings in Watsco were worth $3,013,000 as of its most recent SEC filing. Institutional investors and hedge funds own 89.71% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts have recently commented on WSO shares. Wall Street Zen raised Watsco from a "sell" rating to a "hold" rating in a research report on Friday, May 9th. Robert W. Baird lowered their price target on shares of Watsco from $560.00 to $540.00 and set an "outperform" rating for the company in a report on Thursday, April 24th. Morgan Stanley set a $505.00 price objective on shares of Watsco in a research report on Wednesday, July 2nd. UBS Group lowered their target price on shares of Watsco from $455.00 to $450.00 and set a "neutral" rating for the company in a research note on Wednesday, June 25th. Finally, JPMorgan Chase & Co. lifted their price target on Watsco from $445.00 to $460.00 and gave the stock a "neutral" rating in a report on Tuesday, May 27th. Seven analysts have rated the stock with a hold rating and one has given a buy rating to the stock. According to MarketBeat, Watsco currently has a consensus rating of "Hold" and a consensus price target of $484.17.

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.

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