Zacks Research Issues Negative Estimate for Watsco Earnings

Key Points

• Zacks Research has revised its Q2 2026 earnings estimate for Watsco downward from $5.27 to $4.69 per share.
• JPMorgan Chase has raised Watsco's price target to $460.00, while UBS Group has lowered it to $450.00, with a current consensus rating of "Hold."
• Watsco recently declared a quarterly dividend of $3.00 per share, which translates to an annualized yield of 2.9% and has a dividend payout ratio of 92.02%.

Watsco, Inc. (NYSE:WSO - Free Report) - Zacks Research cut their Q2 2026 earnings estimates for shares of Watsco in a report released on Wednesday, August 20th. Zacks Research analyst Team now expects that the construction company will earn $4.69 per share for the quarter, down from their prior estimate of $5.27. The consensus estimate for Watsco's current full-year earnings is $14.62 per share. Zacks Research also issued estimates for Watsco's FY2026 earnings at $14.60 EPS.

Several other equities research analysts have also recently weighed in on WSO. JPMorgan Chase & Co. increased their price target on shares of Watsco from $445.00 to $460.00 and gave the company a "neutral" rating in a research report on Tuesday, May 27th. Morgan Stanley set a $505.00 target price on shares of Watsco in a research report on Wednesday, July 2nd. UBS Group dropped their target price on shares of Watsco from $455.00 to $450.00 and set a "neutral" rating for the company in a research report on Wednesday, June 25th. Finally, Wall Street Zen raised shares of Watsco from a "sell" rating to a "hold" rating in a research report on Friday, May 9th. One equities research analyst has rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $484.17.

Watsco Stock Up 2.3%

Shares of WSO opened at $414.7760 on Monday. The stock has a market capitalization of $16.82 billion, a P/E ratio of 31.81 and a beta of 0.95. The firm has a fifty day simple moving average of $444.46 and a two-hundred day simple moving average of $469.29. Watsco has a twelve month low of $397.73 and a twelve month high of $571.41.

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

Watsco Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Wednesday, July 16th were issued a dividend of $3.00 per share. This represents a $12.00 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend was Wednesday, July 16th. Watsco's dividend payout ratio (DPR) is currently 92.02%.

Institutional Investors Weigh In On Watsco

Hedge funds and other institutional investors have recently made changes to their positions in the company. Opal Wealth Advisors LLC acquired a new stake in shares of Watsco in the 1st quarter valued at $25,000. Manitou Investment Management Ltd. acquired a new stake in shares of Watsco in the 1st quarter valued at $25,000. WPG Advisers LLC acquired a new stake in shares of Watsco in the 1st quarter valued at $25,000. TCTC Holdings LLC increased its stake in shares of Watsco by 115.4% in the 1st quarter. TCTC Holdings LLC now owns 56 shares of the construction company's stock valued at $28,000 after buying an additional 30 shares during the period. Finally, City Holding Co. acquired a new stake in shares of Watsco in the 1st quarter valued at $29,000. 89.71% of the stock is owned by institutional investors and hedge funds.

About Watsco

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.

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