William Blair Comments on Watsco's Q3 Earnings (NYSE:WSO)

Watsco, Inc. (NYSE:WSO - Free Report) - Analysts at William Blair cut their Q3 2025 earnings per share estimates for Watsco in a research note issued on Monday, July 14th. William Blair analyst R. Merkel now forecasts that the construction company will post earnings of $5.05 per share for the quarter, down from their prior estimate of $5.07. The consensus estimate for Watsco's current full-year earnings is $14.62 per share. William Blair also issued estimates for Watsco's Q1 2026 earnings at $2.09 EPS, Q3 2026 earnings at $5.34 EPS and Q4 2026 earnings at $2.97 EPS.

Watsco (NYSE:WSO - Get Free Report) last released its quarterly earnings data on Wednesday, April 23rd. The construction company reported $1.93 earnings per share for the quarter, missing the consensus estimate of $2.29 by ($0.36). The firm had revenue of $1.53 billion during the quarter, compared to analyst estimates of $1.66 billion. Watsco had a net margin of 6.98% and a return on equity of 17.13%. The business's revenue for the quarter was down 2.2% on a year-over-year basis. During the same period in the prior year, the firm earned $2.17 earnings per share.

A number of other equities analysts also recently commented on WSO. Mizuho set a $490.00 target price on shares of Watsco in a research note on Thursday, April 24th. UBS Group lowered their price target on Watsco from $455.00 to $450.00 and set a "neutral" rating for the company in a report on Wednesday, June 25th. Robert W. Baird reduced their price objective on Watsco from $560.00 to $540.00 and set an "outperform" rating on the stock in a research note on Thursday, April 24th. Morgan Stanley set a $505.00 target price on Watsco in a research report on Wednesday, July 2nd. Finally, JPMorgan Chase & Co. raised their target price on Watsco from $445.00 to $460.00 and gave the company a "neutral" rating in a report on Tuesday, May 27th. Seven equities research analysts have rated the stock with a hold rating and one has given a buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $484.17.

Watsco Stock Up 0.4%

Shares of WSO stock opened at $474.76 on Wednesday. Watsco has a fifty-two week low of $418.31 and a fifty-two week high of $571.42. The firm's 50 day moving average price is $453.19 and its two-hundred day moving average price is $476.82. The stock has a market cap of $19.23 billion, a price-to-earnings ratio of 36.49 and a beta of 1.04.

Watsco Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 31st. Shareholders of record on Wednesday, July 16th will be given a $3.00 dividend. The ex-dividend date is Wednesday, July 16th. This represents a $12.00 dividend on an annualized basis and a yield of 2.53%. Watsco's payout ratio is currently 92.24%.

Institutional Trading of Watsco

Several large investors have recently modified their holdings of the business. Vanguard Group Inc. boosted its holdings in Watsco by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 3,618,109 shares of the construction company's stock valued at $1,714,586,000 after purchasing an additional 52,127 shares during the last quarter. Kayne Anderson Rudnick Investment Management LLC raised its position in shares of Watsco by 0.5% in the 1st quarter. Kayne Anderson Rudnick Investment Management LLC now owns 1,557,610 shares of the construction company's stock valued at $791,734,000 after purchasing an additional 7,760 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its stake in shares of Watsco by 6.0% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 1,454,512 shares of the construction company's stock valued at $739,088,000 after buying an additional 82,977 shares during the last quarter. Blair William & Co. IL boosted its stake in shares of Watsco by 5.7% during the 1st quarter. Blair William & Co. IL now owns 814,712 shares of the construction company's stock valued at $414,118,000 after buying an additional 43,776 shares during the last quarter. Finally, Geode Capital Management LLC grew its position in shares of Watsco by 3.0% during the fourth quarter. Geode Capital Management LLC now owns 725,186 shares of the construction company's stock worth $343,168,000 after buying an additional 20,856 shares in the last quarter. 89.71% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.