Research Analysts Set Expectations for Watsco Q3 Earnings

Key Points

• William Blair has lowered its Q3 2025 earnings per share estimate for Watsco to $4.66, down from a previous estimate of $5.05.
• The company's latest quarterly earnings reported were $4.52 per share, which missed analysts' expectations by 32 cents.
• Watsco declared a quarterly dividend of $3.00 per share, resulting in an annualized yield of 2.7%.

Watsco, Inc. (NYSE:WSO - Free Report) - William Blair cut their Q3 2025 earnings per share estimates for shares of Watsco in a report issued on Wednesday, July 30th. William Blair analyst R. Merkel now anticipates that the construction company will post earnings per share of $4.66 for the quarter, down from their previous forecast of $5.05. The consensus estimate for Watsco's current full-year earnings is $14.62 per share. William Blair also issued estimates for Watsco's FY2025 earnings at $13.35 EPS and Q1 2026 earnings at $2.35 EPS.

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

WSO has been the topic of several other research reports. JPMorgan Chase & Co. increased their target price on Watsco from $445.00 to $460.00 and gave the company a "neutral" rating in a research report on Tuesday, May 27th. Morgan Stanley set a $505.00 price objective on Watsco in a research report on Wednesday, July 2nd. Robert W. Baird lowered their price objective on Watsco from $560.00 to $540.00 and set an "outperform" rating for the company in a research report 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 research report on Wednesday, June 25th. Finally, Mizuho set a $490.00 price target on Watsco in a research report on Thursday, April 24th. Seven equities research analysts have rated the stock with a hold rating and one has issued a buy rating to the company's stock. According to data from MarketBeat.com, Watsco presently has a consensus rating of "Hold" and an average price target of $484.17.

Watsco Price Performance

NYSE WSO traded down $16.46 during midday trading on Friday, hitting $434.42. 375,572 shares of the company traded hands, compared to its average volume of 335,972. The company has a market cap of $17.60 billion, a PE ratio of 33.31 and a beta of 0.95. The company's 50-day simple moving average is $452.11 and its 200-day simple moving average is $476.59. Watsco has a 52 week low of $418.31 and a 52 week high of $571.41.

Hedge Funds Weigh In On Watsco

Several institutional investors and hedge funds have recently modified their holdings of the business. Opal Wealth Advisors LLC purchased a new stake in Watsco during the 1st quarter worth approximately $25,000. Manitou Investment Management Ltd. acquired a new position in shares of Watsco during the 1st quarter worth approximately $25,000. WPG Advisers LLC acquired a new position in shares of Watsco during the 1st quarter worth approximately $25,000. TCTC Holdings LLC boosted its holdings in shares of Watsco by 115.4% during the 1st quarter. TCTC Holdings LLC now owns 56 shares of the construction company's stock worth $28,000 after purchasing an additional 30 shares during the last quarter. Finally, City Holding Co. acquired a new position in shares of Watsco during the 1st quarter worth approximately $29,000. Hedge funds and other institutional investors own 89.71% of the company's stock.

Watsco Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Wednesday, July 16th were paid a $3.00 dividend. This represents a $12.00 annualized dividend and a dividend yield of 2.8%. The ex-dividend date was Wednesday, July 16th. Watsco's payout ratio is currently 92.02%.

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.