What is Zacks Research's Forecast for Watsco Q2 Earnings?

Watsco, Inc. (NYSE:WSO - Free Report) - Research analysts at Zacks Research lifted their Q2 2025 EPS estimates for Watsco in a research note issued on Wednesday, May 14th. Zacks Research analyst R. Department now anticipates that the construction company will post earnings of $4.90 per share for the quarter, up from their previous forecast 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 announced its quarterly earnings data on Wednesday, April 23rd. The construction company reported $1.93 EPS for the quarter, missing the consensus estimate 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 for the quarter, compared to analyst estimates of $1.66 billion. During the same quarter in the prior year, the firm earned $2.17 earnings per share. The firm's revenue for the quarter was down 2.2% on a year-over-year basis.

Several other research analysts also recently commented on the stock. Loop Capital boosted their price objective on shares of Watsco from $450.00 to $460.00 and gave the company a "hold" rating in a research 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 on the stock in a research note on Thursday, April 24th. Morgan Stanley started coverage on shares of Watsco in a research note on Monday, April 14th. They set an "equal weight" rating and a $515.00 target price on the stock. Mizuho set a $490.00 target price on shares of Watsco in a research note on Thursday, April 24th. Finally, UBS Group decreased 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. Seven investment analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. Based on data from MarketBeat, Watsco has an average rating of "Hold" and an average target price of $480.83.

Watsco Price Performance

WSO traded down $4.11 during trading on Friday, hitting $488.06. 181,459 shares of the stock traded hands, compared to its average volume of 253,392. Watsco has a twelve month low of $439.08 and a twelve month high of $571.42. The company has a market cap of $19.72 billion, a price-to-earnings ratio of 36.83 and a beta of 1.11. The business has a 50 day moving average price of $489.46 and a 200 day moving average price of $497.58.

Watsco Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, April 30th. Investors of record on Tuesday, April 15th were paid a $3.00 dividend. This is a boost from Watsco's previous quarterly dividend of $2.70. The ex-dividend date of this dividend was Tuesday, April 15th. This represents a $12.00 annualized dividend and a dividend yield of 2.46%. Watsco's payout ratio is currently 92.24%.

Institutional Trading of Watsco

A number of institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. boosted its position in Watsco by 1.5% during the fourth quarter. Vanguard Group Inc. now owns 3,618,109 shares of the construction company's stock valued at $1,714,586,000 after acquiring an additional 52,127 shares during the last quarter. Kayne Anderson Rudnick Investment Management LLC raised its holdings in shares of Watsco by 0.5% during 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 during the period. Charles Schwab Investment Management Inc. raised its holdings 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 during the period. Blair William & Co. IL raised its holdings in shares of Watsco by 5.7% during 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 during the period. Finally, Geode Capital Management LLC raised its holdings 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 valued at $343,168,000 after purchasing 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.