Equities Analysts Set Expectations for Watsco Q1 Earnings

Watsco, Inc. (NYSE:WSO) – William Blair upped their Q1 2025 earnings per share estimates for shares of Watsco in a research note issued to investors on Tuesday, February 18th. William Blair analyst R. Merkel now expects that the construction company will earn $2.35 per share for the quarter, up from their prior estimate of $2.22. The consensus estimate for Watsco’s current full-year earnings is $14.50 per share. William Blair also issued estimates for Watsco’s Q3 2025 earnings at $5.01 EPS and FY2025 earnings at $14.90 EPS.

Watsco (NYSE:WSO) last released its quarterly earnings results on Tuesday, February 18th. The construction company reported $2.37 earnings per share for the quarter, topping the consensus estimate of $2.13 by $0.24. The firm had revenue of $1.75 billion during the quarter, compared to the consensus estimate of $1.67 billion. Watsco had a net margin of 7.04% and a return on equity of 17.61%.

Several other research firms have also commented on WSO. Raymond James initiated coverage on Watsco in a report on Friday, January 17th. They set a “market perform” rating on the stock. Robert W. Baird lifted their price target on shares of Watsco from $540.00 to $560.00 and gave the company an “outperform” rating in a research report on Wednesday. Finally, Northcoast Research began coverage on Watsco in a research note on Friday, November 22nd. They set a “neutral” rating on the stock. Three equities research analysts have rated the stock with a hold rating and two have issued a buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $495.00.

Watsco Trading Up 0.8 %

NYSE:WSO opened at $515.53 on Thursday. The company’s 50-day moving average price is $484.99 and its 200-day moving average price is $491.92. The company has a market cap of $20.82 billion, a P/E ratio of 38.91 and a beta of 0.95. Watsco has a twelve month low of $377.92 and a twelve month high of $571.41.

Watsco Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, January 31st. Investors of record on Friday, January 17th were issued a $2.70 dividend. The ex-dividend date was Friday, January 17th. This represents a $10.80 annualized dividend and a yield of 2.09%. Watsco’s dividend payout ratio (DPR) is 81.51%.

Insider Activity

In related news, EVP Barry S. Logan sold 10,998 shares of the 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 transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Company insiders own 12.86% of the company’s stock.

Institutional Trading of Watsco

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Rialto Wealth Management LLC purchased a new stake in shares of Watsco in the fourth quarter valued at about $31,000. Wingate Wealth Advisors Inc. acquired a new stake in shares of Watsco in the 4th quarter worth approximately $36,000. Ashton Thomas Securities LLC purchased a new position in shares of Watsco in the third quarter valued at $43,000. Quarry LP increased its holdings in Watsco by 57.9% during the 3rd quarter. Quarry LP now owns 90 shares of the construction company’s stock valued at $44,000 after acquiring an additional 33 shares in the last quarter. Finally, Brooklyn Investment Group purchased a new stake in shares of Watsco in the third quarter valued at about $48,000. Institutional investors and hedge funds own 89.71% of the company’s stock.

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.