Zacks Research Has Pessimistic View of Watsco Q3 Earnings

Key Points

• Zacks Research has lowered its Q3 2025 earnings per share estimate for Watsco to $4.61, down from a previous forecast of $4.81.
• Watsco's most recent earnings report showed an EPS of $4.52, which missed analysts' expectations by $0.32.
• The company's dividend yield stands at 3.0%, with a recent quarterly dividend payment of $3.00 per share.

Watsco, Inc. (NYSE:WSO - Free Report) - Equities research analysts at Zacks Research dropped their Q3 2025 earnings per share estimates for Watsco in a research report issued on Wednesday, August 20th. Zacks Research analyst Team now anticipates that the construction company will post earnings of $4.61 per share for the quarter, down from their prior forecast of $4.81. The consensus estimate for Watsco's current full-year earnings is $14.62 per share. Zacks Research also issued estimates for Watsco's Q4 2025 earnings at $2.54 EPS, FY2025 earnings at $13.60 EPS, Q1 2026 earnings at $2.12 EPS, Q3 2026 earnings at $4.86 EPS, Q4 2026 earnings at $2.92 EPS, Q1 2027 earnings at $2.13 EPS, Q2 2027 earnings at $5.38 EPS and FY2027 earnings at $16.02 EPS.

Watsco (NYSE:WSO - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The construction company reported $4.52 EPS for the quarter, missing analysts' consensus estimates of $4.84 by ($0.32). The company had revenue of $2.06 billion during the quarter, compared to analyst estimates of $2.24 billion. Watsco had a return on equity of 16.96% and a net margin of 7.08%.Watsco's revenue was down 3.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $4.49 earnings per share.

A number of other equities research analysts also recently weighed in on the company. Wall Street Zen upgraded Watsco from a "sell" rating to a "hold" rating in a report on Friday, May 9th. UBS Group lowered their target price on Watsco from $455.00 to $450.00 and set a "neutral" rating for the company in a report on Wednesday, June 25th. JPMorgan Chase & Co. lifted their target price on Watsco from $445.00 to $460.00 and gave the stock a "neutral" rating in a report on Tuesday, May 27th. Finally, Morgan Stanley set a $505.00 price objective on Watsco in a report on Wednesday, July 2nd. One equities research analyst has rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $484.17.

Watsco Trading Down 2.0%

WSO stock traded down $8.2550 during mid-day trading on Friday, reaching $407.5450. The company's stock had a trading volume of 269,401 shares, compared to its average volume of 302,352. The company has a market cap of $16.52 billion, a price-to-earnings ratio of 31.25 and a beta of 0.95. The business's 50 day moving average price is $444.46 and its 200 day moving average price is $469.29. Watsco has a 12 month low of $397.73 and a 12 month high of $571.41.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of WSO. GAMMA Investing LLC boosted its position in shares of Watsco by 89,376.0% during the first quarter. GAMMA Investing LLC now owns 477,802 shares of the construction company's stock valued at $242,867,000 after buying an additional 477,268 shares during the last quarter. Lord Abbett & CO. LLC bought a new position in Watsco in the 4th quarter valued at $104,533,000. Norges Bank bought a new position in Watsco in the 2nd quarter valued at $84,826,000. Goldman Sachs Group Inc. grew its stake in Watsco by 62.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 468,875 shares of the construction company's stock valued at $238,329,000 after purchasing an additional 180,951 shares during the period. Finally, Corient Private Wealth LLC grew its stake in Watsco by 106.4% in the 2nd quarter. Corient Private Wealth LLC now owns 296,170 shares of the construction company's stock valued at $130,801,000 after purchasing an additional 152,662 shares during the period. Hedge funds and other institutional investors own 89.71% of the company's stock.

Watsco Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Wednesday, July 16th were given a dividend of $3.00 per share. The ex-dividend date of this dividend was Wednesday, July 16th. This represents a $12.00 annualized dividend and a dividend yield of 2.9%. Watsco's payout ratio is presently 92.02%.

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.