Zacks Research Analysts Boost Earnings Estimates for Watsco

Watsco, Inc. (NYSE:WSO - Free Report) - Zacks Research increased their Q4 2025 earnings per share estimates for shares of Watsco in a note issued to investors on Wednesday, May 14th. Zacks Research analyst R. Department now anticipates that the construction company will earn $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.

A number of other research analysts have also commented on WSO. Robert W. Baird lowered their price objective on shares of Watsco from $560.00 to $540.00 and set an "outperform" rating on the stock in a research note on Thursday, April 24th. UBS Group reduced their target price on shares of Watsco from $475.00 to $455.00 and set a "neutral" rating for the company in a report on Thursday, April 24th. Loop Capital raised their target price on shares of Watsco from $450.00 to $460.00 and gave the stock a "hold" rating in a report on Thursday, February 27th. Mizuho set a $490.00 price objective on shares of Watsco in a research note on Thursday, April 24th. Finally, Wall Street Zen raised shares of Watsco from a "sell" rating to a "hold" rating in a research note on Friday, May 9th. Seven 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, the stock presently has an average rating of "Hold" and a consensus price target of $480.83.

Watsco Trading Down 0.2%

NYSE WSO traded down $1.11 during trading hours on Monday, reaching $454.98. The company's stock had a trading volume of 252,686 shares, compared to its average volume of 254,528. The business has a 50-day simple moving average of $485.90 and a 200 day simple moving average of $496.61. The stock has a market cap of $18.43 billion, a PE ratio of 34.34 and a beta of 1.11. Watsco has a 52 week low of $439.08 and a 52 week high of $571.42.

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 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 firm had revenue of $1.53 billion during the quarter, compared to analysts' expectations of $1.66 billion. During the same period in the previous year, the company earned $2.17 earnings per share. The business's quarterly revenue was down 2.2% on a year-over-year basis.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its position in shares of Watsco by 1.5% during the fourth quarter. Vanguard Group Inc. now owns 3,618,109 shares of the construction company's stock worth $1,714,586,000 after purchasing an additional 52,127 shares in the last quarter. Kayne Anderson Rudnick Investment Management LLC increased its stake in Watsco by 0.5% in the first quarter. Kayne Anderson Rudnick Investment Management LLC now owns 1,557,610 shares of the construction company's stock valued at $791,734,000 after purchasing an additional 7,760 shares in the last quarter. Charles Schwab Investment Management Inc. increased its stake in Watsco by 6.0% in the first quarter. Charles Schwab Investment Management Inc. now owns 1,454,512 shares of the construction company's stock valued at $739,088,000 after purchasing an additional 82,977 shares in the last quarter. Blair William & Co. IL increased its stake in Watsco by 5.7% in the first quarter. Blair William & Co. IL now owns 814,712 shares of the construction company's stock valued at $414,118,000 after purchasing an additional 43,776 shares in the last quarter. Finally, Geode Capital Management LLC increased its position in shares of Watsco by 3.0% during the fourth quarter. Geode Capital Management LLC now owns 725,186 shares of the construction company's stock worth $343,168,000 after acquiring an additional 20,856 shares in the last quarter. Institutional investors own 89.71% of the company's stock.

Watsco Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, April 30th. Investors of record on Tuesday, April 15th were issued a $3.00 dividend. This represents a $12.00 annualized dividend and a yield of 2.64%. The ex-dividend date of this dividend was Tuesday, April 15th. This is an increase from Watsco's previous quarterly dividend of $2.70. Watsco's dividend payout ratio (DPR) is 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.