What is William Blair's Estimate for Watsco Q4 Earnings?

Key Points

• William Blair has lowered its Q4 2025 earnings estimate for Watsco from $2.55 to $2.23 per share, reflecting a pessimistic outlook for the company.
• Watsco's most recent earnings report revealed a missed consensus estimate with $4.52 EPS compared to the expected $4.84 EPS, alongside a decline in revenue of 3.6% year-over-year.
• The construction company's dividend yield is currently at 2.8%, with a quarterly dividend of $3.00 per share having been paid recently.

Watsco, Inc. (NYSE:WSO - Free Report) - Investment analysts at William Blair dropped their Q4 2025 earnings per share (EPS) estimates for shares of Watsco in a research report issued to clients and investors on Wednesday, July 30th. William Blair analyst R. Merkel now expects that the construction company will earn $2.23 per share for the quarter, down from their prior estimate of $2.55. The consensus estimate for Watsco's current full-year earnings is $14.62 per share. William Blair also issued estimates for Watsco's Q2 2026 earnings at $4.19 EPS, Q3 2026 earnings at $4.71 EPS, Q4 2026 earnings at $2.48 EPS, FY2026 earnings at $13.73 EPS and FY2027 earnings at $15.55 EPS.

Watsco (NYSE:WSO - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The construction company reported $4.52 earnings per share for the quarter, missing the consensus estimate of $4.84 by ($0.32). The firm 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%. Watsco's quarterly revenue was down 3.6% compared to the same quarter last year. During the same period in the previous year, the company earned $4.49 earnings per share.

WSO has been the topic of several other reports. Mizuho set a $490.00 target price on Watsco in a report on Thursday, April 24th. Morgan Stanley set a $505.00 price target on Watsco in a research report on Wednesday, July 2nd. Robert W. Baird dropped their price objective on shares of Watsco from $560.00 to $540.00 and set an "outperform" rating on the stock in a report on Thursday, April 24th. Wall Street Zen raised shares of Watsco from a "sell" rating to a "hold" rating in a report on Friday, May 9th. Finally, UBS Group reduced 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. Seven research analysts have rated the stock with a hold rating and one has issued a buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $484.17.

Watsco Trading Up 0.7%

Watsco stock traded up $2.77 during trading on Monday, reaching $428.28. The company had a trading volume of 244,905 shares, compared to its average volume of 359,132. The firm's 50-day simple moving average is $451.54 and its 200 day simple moving average is $475.99. The firm has a market capitalization of $17.35 billion, a price-to-earnings ratio of 32.84 and a beta of 0.95. Watsco has a 52 week low of $418.31 and a 52 week high of $571.41.

Institutional Trading of Watsco

A number of hedge funds and other institutional investors have recently made changes to their positions in WSO. Opal Wealth Advisors LLC purchased a new position in shares of Watsco during the 1st quarter worth approximately $25,000. Manitou Investment Management Ltd. purchased a new position in shares of Watsco during the 1st quarter worth approximately $25,000. WPG Advisers LLC purchased a new position in shares of Watsco during the 1st quarter worth approximately $25,000. TCTC Holdings LLC boosted its position 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 period. Finally, City Holding Co. purchased a new position in Watsco in the 1st quarter valued at approximately $29,000. Institutional investors and hedge funds own 89.71% of the company's stock.

Watsco Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Stockholders of record on Wednesday, July 16th were issued a dividend of $3.00 per share. The ex-dividend date was Wednesday, July 16th. This represents a $12.00 dividend on an annualized basis and a dividend yield of 2.8%. Watsco's dividend payout ratio (DPR) 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.