Zacks Research Has Bullish Estimate for Watsco Q2 Earnings

Watsco, Inc. (NYSE:WSO - Free Report) - Zacks Research lifted their Q2 2025 EPS estimates for shares of Watsco in a report issued on Wednesday, May 14th. Zacks Research analyst R. Department now expects that the construction company will post earnings of $4.90 per share for the quarter, up from their prior estimate of $4.78. The consensus estimate for Watsco's current full-year earnings is $14.62 per share. Zacks Research also issued estimates for Watsco's Q3 2025 earnings at $4.81 EPS, FY2025 earnings at $14.18 EPS, Q1 2026 earnings at $2.28 EPS, Q3 2026 earnings at $5.19 EPS, Q4 2026 earnings at $2.90 EPS, Q1 2027 earnings at $2.22 EPS and FY2027 earnings at $16.70 EPS.

Watsco (NYSE:WSO - Get Free Report) last issued its quarterly earnings data on Wednesday, April 23rd. The construction company reported $1.93 earnings per share (EPS) for the quarter, missing the consensus estimate 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 for the quarter, compared to analysts' expectations of $1.66 billion. During the same period last year, the company earned $2.17 earnings per share. The firm's revenue was down 2.2% on a year-over-year basis.

WSO has been the topic of a number of other research reports. Mizuho set a $490.00 price target on shares of Watsco in a research note on Thursday, April 24th. Loop Capital lifted their target price on shares of Watsco from $450.00 to $460.00 and gave the company a "hold" rating in a report on Thursday, February 27th. Robert W. Baird decreased their target price on shares of Watsco from $560.00 to $540.00 and set an "outperform" rating for the company in a research note on Thursday, April 24th. StockNews.com upgraded shares of Watsco from a "sell" rating to a "hold" rating in a research report on Friday, May 9th. Finally, Morgan Stanley initiated 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 analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $480.83.

Watsco Price Performance

Shares of NYSE:WSO traded down $8.08 during trading hours on Friday, hitting $461.83. The company's stock had a trading volume of 130,755 shares, compared to its average volume of 253,633. Watsco has a 52 week low of $439.08 and a 52 week high of $571.42. The firm's fifty day moving average price is $489.05 and its 200 day moving average price is $497.39. The company has a market capitalization of $18.66 billion, a price-to-earnings ratio of 34.86 and a beta of 1.11.

Watsco Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 30th. Shareholders of record on Tuesday, April 15th were given a $3.00 dividend. This represents a $12.00 annualized dividend and a yield of 2.60%. The ex-dividend date was Tuesday, April 15th. This is a boost from Watsco's previous quarterly dividend of $2.70. Watsco's dividend payout ratio (DPR) is presently 92.24%.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Vanguard Group Inc. boosted its stake in Watsco by 1.5% in the 4th 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 during the period. Kayne Anderson Rudnick Investment Management LLC lifted its holdings in shares of 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 worth $791,734,000 after acquiring an additional 7,760 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its stake in shares of Watsco by 6.0% during 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 lifted its holdings in Watsco by 5.7% during the 1st quarter. Blair William & Co. IL now owns 814,712 shares of the construction company's stock worth $414,118,000 after buying an additional 43,776 shares during the period. Finally, Geode Capital Management LLC lifted its holdings in Watsco by 3.0% in the fourth quarter. Geode Capital Management LLC now owns 725,186 shares of the construction company's stock valued at $343,168,000 after buying an additional 20,856 shares during the period. Institutional investors own 89.71% of the company's stock.

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.