Research Analysts Issue Forecasts for Watsco Q2 Earnings

Watsco, Inc. (NYSE:WSO) – Stock analysts at William Blair raised their Q2 2025 EPS estimates for shares of Watsco in a research report issued to clients and investors on Wednesday, January 15th. William Blair analyst R. Merkel now expects that the construction company will post earnings per share of $5.12 for the quarter, up from their previous forecast of $5.07. The consensus estimate for Watsco’s current full-year earnings is $12.97 per share. William Blair also issued estimates for Watsco’s Q3 2025 earnings at $5.07 EPS, Q4 2025 earnings at $2.44 EPS and FY2026 earnings at $16.59 EPS.

A number of other brokerages also recently weighed in on WSO. Northcoast Research assumed coverage on shares of Watsco in a research note on Friday, November 22nd. They issued a “neutral” rating on the stock. Robert W. Baird lowered their price objective on shares of Watsco from $550.00 to $540.00 and set an “outperform” rating on the stock in a research report on Thursday, October 24th. Finally, Raymond James started coverage on shares of Watsco in a report on Friday. They set a “market perform” rating for the company. Three equities research analysts have rated the stock with a hold rating and two have assigned a buy rating to the stock. According to data from MarketBeat.com, Watsco presently has an average rating of “Hold” and a consensus price target of $488.33.

Watsco Trading Up 1.2 %

Shares of WSO opened at $496.92 on Friday. Watsco has a 12-month low of $373.33 and a 12-month high of $571.41. The company has a market cap of $20.07 billion, a PE ratio of 38.40 and a beta of 0.95. The stock has a 50-day moving average price of $508.48 and a 200-day moving average price of $492.31.

Watsco (NYSE:WSO) last posted its quarterly earnings data on Wednesday, October 23rd. The construction company reported $4.22 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.73 by ($0.51). The business had revenue of $2.16 billion for the quarter, compared to the consensus estimate of $2.24 billion. Watsco had a net margin of 6.99% and a return on equity of 17.77%. Watsco’s quarterly revenue was up 1.6% on a year-over-year basis. During the same period in the prior year, the business posted $4.35 EPS.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. FMR LLC boosted its holdings in Watsco by 10.6% during the 3rd quarter. FMR LLC now owns 3,624,159 shares of the construction company’s stock valued at $1,782,651,000 after acquiring an additional 346,470 shares during the period. Charles Schwab Investment Management Inc. lifted its position in Watsco by 5.2% in the third quarter. Charles Schwab Investment Management Inc. now owns 1,252,822 shares of the construction company’s stock valued at $616,357,000 after purchasing an additional 62,041 shares during the last quarter. State Street Corp boosted its stake in shares of Watsco by 5.9% during the third quarter. State Street Corp now owns 1,173,762 shares of the construction company’s stock valued at $577,350,000 after purchasing an additional 65,846 shares during the period. Geode Capital Management LLC grew its holdings in shares of Watsco by 9.9% in the third quarter. Geode Capital Management LLC now owns 704,330 shares of the construction company’s stock worth $345,783,000 after purchasing an additional 63,254 shares during the last quarter. Finally, Markel Group Inc. grew its holdings in shares of Watsco by 2.0% in the third quarter. Markel Group Inc. now owns 582,500 shares of the construction company’s stock worth $286,520,000 after purchasing an additional 11,250 shares during the last quarter. 89.71% of the stock is owned by institutional investors.

Insiders Place Their Bets

In related news, EVP Barry S. Logan sold 10,998 shares of Watsco stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $508.21, for a total value of $5,589,293.58. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 12.86% of the stock is owned by insiders.

Watsco Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, January 31st. Shareholders of record on Friday, January 17th will be paid a $2.70 dividend. This represents a $10.80 annualized dividend and a yield of 2.17%. The ex-dividend date of this dividend is Friday, January 17th. Watsco’s dividend payout ratio is currently 83.46%.

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.