Research Analysts Offer Predictions for Watsco Q3 Earnings

Key Points

• William Blair has revised its Q3 2025 EPS forecast for Watsco, decreasing it from $4.66 to $4.54.
• The company reported $4.52 EPS for its last quarter, falling short of estimates and showing a 3.6% decline in year-over-year revenue.
• Watsco declared a quarterly dividend of $3.00, leading to an annualized dividend of $12.00 and a yield of 3.1%.

Watsco, Inc. (NYSE:WSO - Free Report) - Research analysts at William Blair decreased their Q3 2025 earnings estimates for Watsco in a research note issued on Tuesday, September 2nd. William Blair analyst R. Merkel now forecasts that the construction company will earn $4.54 per share for the quarter, down from their previous forecast of $4.66. 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 $2.38 EPS.

Watsco (NYSE:WSO - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The construction company reported $4.52 EPS for the quarter, missing the consensus estimate of $4.84 by ($0.32). The business had revenue of $2.06 billion during the quarter, compared to analyst estimates of $2.24 billion. Watsco had a net margin of 7.08% and a return on equity of 16.96%. The firm's revenue for the quarter was down 3.6% compared to the same quarter last year. During the same quarter in the prior year, the company earned $4.49 earnings per share.

Other analysts have also issued reports about the stock. UBS Group lowered their price target on shares of Watsco from $455.00 to $450.00 and set a "neutral" rating on the stock in a research report on Wednesday, June 25th. Morgan Stanley set a $505.00 target price on shares of Watsco in a research report on Wednesday, July 2nd. Finally, JPMorgan Chase & Co. raised their target price on shares of Watsco from $445.00 to $460.00 and gave the stock a "neutral" rating in a research report on Tuesday, May 27th. One investment analyst has rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, Watsco presently has a consensus rating of "Hold" and an average target price of $484.17.

Watsco Trading Up 1.2%

Shares of WSO stock traded up $5.02 during trading hours on Thursday, hitting $408.41. The company's stock had a trading volume of 241,987 shares, compared to its average volume of 282,389. The business has a fifty day moving average of $439.49 and a 200-day moving average of $463.70. The stock has a market cap of $16.56 billion, a price-to-earnings ratio of 31.32 and a beta of 0.95. Watsco has a twelve month low of $390.36 and a twelve month high of $571.41.

Watsco Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Shareholders of record on Wednesday, July 16th were paid a dividend of $3.00 per share. The ex-dividend date of this dividend was Wednesday, July 16th. This represents a $12.00 dividend on an annualized basis and a yield of 2.9%. Watsco's dividend payout ratio (DPR) is currently 92.02%.

Hedge Funds Weigh In On Watsco

A number of hedge funds have recently made changes to their positions in WSO. Manitou Investment Management Ltd. purchased a new position in shares of Watsco in the 1st quarter valued at $25,000. Opal Wealth Advisors LLC purchased a new position in shares of Watsco in the 1st quarter valued at $25,000. WPG Advisers LLC purchased a new position in shares of Watsco in the 1st quarter valued at $25,000. Ameritas Advisory Services LLC purchased a new position in shares of Watsco in the 2nd quarter valued at $26,000. Finally, TCTC Holdings LLC raised its stake in shares of Watsco by 115.4% in the 1st quarter. TCTC Holdings LLC now owns 56 shares of the construction company's stock valued at $28,000 after acquiring an additional 30 shares during the period. Hedge funds and other institutional investors own 89.71% of the company's stock.

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.