Zacks Research Comments on Watsco's Q4 Earnings (NYSE:WSO)

Watsco, Inc. (NYSE:WSO - Free Report) - Stock analysts at Zacks Research upped their Q4 2025 earnings per share estimates for Watsco in a research note issued on Wednesday, May 14th. Zacks Research analyst R. Department now expects that the construction company will post earnings of $2.53 per share for the quarter, up from their prior estimate of $2.51. The consensus estimate for Watsco's current full-year earnings is $14.62 per share. Zacks Research also issued estimates for Watsco's Q2 2026 earnings at $5.27 EPS and FY2026 earnings at $15.65 EPS.

Watsco (NYSE:WSO - Get Free Report) last announced its earnings results 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 net margin of 7.04% and a return on equity of 17.59%. The business had revenue of $1.53 billion during the quarter, compared to analyst estimates of $1.66 billion. During the same period in the previous year, the company earned $2.17 earnings per share. The business's revenue for the quarter was down 2.2% on a year-over-year basis.

A number of other equities research analysts have also issued reports on the stock. UBS Group cut their target price on shares of Watsco from $475.00 to $455.00 and set a "neutral" rating on the stock in a research note on Thursday, April 24th. Robert W. Baird cut 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. Loop Capital lifted their target price on Watsco from $450.00 to $460.00 and gave the stock a "hold" rating in a research report on Thursday, February 27th. StockNews.com raised Watsco from a "sell" rating to a "hold" rating in a research report on Friday, May 9th. Finally, Morgan Stanley assumed coverage on shares of Watsco in a report on Monday, April 14th. They issued an "equal weight" rating and a $515.00 price objective for the company. Seven research analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $480.83.

Watsco Price Performance

WSO traded down $10.27 during trading on Monday, hitting $459.64. The company had a trading volume of 281,548 shares, compared to its average volume of 254,446. Watsco has a 1-year low of $439.08 and a 1-year high of $571.42. The company has a market cap of $18.57 billion, a PE ratio of 34.69 and a beta of 1.11. The business has a 50-day moving average of $488.08 and a 200-day moving average of $497.13.

Hedge Funds Weigh In On Watsco

Several hedge funds and other institutional investors have recently modified their holdings of the company. JPMorgan Chase & Co. grew its position in Watsco by 9.9% in the 3rd quarter. JPMorgan Chase & Co. now owns 464,061 shares of the construction company's stock worth $228,263,000 after purchasing an additional 41,845 shares during the last quarter. Avanza Fonder AB bought a new position in Watsco in the 4th quarter worth approximately $1,854,000. HB Wealth Management LLC acquired a new stake in Watsco in the 4th quarter valued at approximately $359,000. My Legacy Advisors LLC raised its stake in Watsco by 3.2% during the 4th quarter. My Legacy Advisors LLC now owns 687 shares of the construction company's stock valued at $329,000 after acquiring an additional 21 shares in the last quarter. Finally, Trueblood Wealth Management LLC boosted its position in Watsco by 2.8% during the 4th quarter. Trueblood Wealth Management LLC now owns 3,783 shares of the construction company's stock worth $1,793,000 after acquiring an additional 103 shares during the period. Institutional investors and hedge funds own 89.71% of the company's stock.

Watsco Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, April 30th. Shareholders of record on Tuesday, April 15th were given a $3.00 dividend. The ex-dividend date was Tuesday, April 15th. This is a positive change from Watsco's previous quarterly dividend of $2.70. This represents a $12.00 annualized dividend and a yield of 2.61%. Watsco's dividend payout ratio (DPR) is currently 92.24%.

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.