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William Blair Issues Optimistic Estimate for Watsco Earnings

Watsco logo with Construction background

Watsco, Inc. (NYSE:WSO - Free Report) - Analysts at William Blair lifted their Q3 2025 earnings per share estimates for shares of Watsco in a research note issued to investors on Wednesday, April 23rd. William Blair analyst R. Merkel now anticipates that the construction company will earn $5.07 per share for the quarter, up from their prior estimate of $5.01. The consensus estimate for Watsco's current full-year earnings is $14.62 per share. William Blair also issued estimates for Watsco's Q4 2025 earnings at $2.52 EPS, FY2025 earnings at $14.62 EPS, Q2 2026 earnings at $5.05 EPS, Q3 2026 earnings at $5.27 EPS, FY2026 earnings at $15.62 EPS and FY2027 earnings at $17.30 EPS.

Watsco (NYSE:WSO - Get Free Report) last posted its quarterly earnings data on Wednesday, April 23rd. The construction company reported $1.93 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.29 by ($0.36). Watsco had a return on equity of 17.59% and a net margin of 7.04%. The firm had revenue of $1.53 billion during the quarter, compared to analysts' expectations of $1.66 billion. During the same quarter in the previous year, the company posted $2.17 earnings per share. Watsco's revenue for the quarter was down 2.2% compared to the same quarter last year.

Other research analysts have also issued research reports about the company. Loop Capital upped their price target on Watsco from $450.00 to $460.00 and gave the company a "hold" rating in a research report on Thursday, February 27th. UBS Group lowered their price target on Watsco from $475.00 to $455.00 and set a "neutral" rating for the company in a research report on Thursday, April 24th. Mizuho set a $490.00 price target on Watsco in a research report on Thursday, April 24th. Morgan Stanley began coverage on Watsco in a research report on Monday, April 14th. They set an "equal weight" rating and a $515.00 price target for the company. Finally, Robert W. Baird lowered their price target on Watsco from $560.00 to $540.00 and set an "outperform" rating for the company in a research report on Thursday, April 24th. One investment analyst has rated the stock with a sell rating, six have given a hold rating and one has assigned a buy rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $480.83.

Get Our Latest Stock Report on WSO

Watsco Stock Performance

WSO stock traded down $1.43 during trading on Friday, hitting $454.18. 90,196 shares of the company traded hands, compared to its average volume of 254,892. The firm has a market capitalization of $18.35 billion, a PE ratio of 34.28 and a beta of 1.00. Watsco has a 1 year low of $439.08 and a 1 year high of $571.42. The company has a 50-day moving average of $496.56 and a 200-day moving average of $498.28.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Opal Wealth Advisors LLC bought a new position in shares of Watsco in the 1st quarter worth approximately $25,000. Manitou Investment Management Ltd. purchased a new stake in shares of Watsco in the first quarter worth $25,000. City Holding Co. bought a new position in shares of Watsco during the first quarter valued at $29,000. Rossby Financial LCC purchased a new position in shares of Watsco in the 1st quarter worth about $33,000. Finally, Rialto Wealth Management LLC bought a new position in Watsco in the 4th quarter worth about $31,000. Institutional investors own 89.71% of the company's stock.

Watsco Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 30th. Stockholders of record on Tuesday, April 15th will be given a $3.00 dividend. The ex-dividend date is Tuesday, April 15th. This represents a $12.00 annualized dividend and a dividend yield of 2.64%. This is a positive change from Watsco's previous quarterly dividend of $2.70. Watsco's dividend payout ratio is currently 92.24%.

About Watsco

(Get Free Report)

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.

See Also

Earnings History and Estimates for Watsco (NYSE:WSO)

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