Zacks Research Has Bullish Forecast for Watsco Q1 Earnings

Watsco, Inc. (NYSE:WSO) – Stock analysts at Zacks Research lifted their Q1 2025 earnings per share estimates for shares of Watsco in a research report issued on Tuesday, March 11th. Zacks Research analyst R. Department now forecasts that the construction company will post earnings per share of $2.27 for the quarter, up from their prior forecast of $2.25. The consensus estimate for Watsco’s current full-year earnings is $14.62 per share. Zacks Research also issued estimates for Watsco’s Q3 2026 earnings at $5.32 EPS, Q4 2026 earnings at $2.85 EPS and FY2026 earnings at $15.93 EPS.

Other equities analysts have also recently issued reports about the company. Robert W. Baird increased their price target on Watsco from $540.00 to $560.00 and gave the stock an “outperform” rating in a report on Wednesday, February 19th. Raymond James initiated coverage on Watsco in a report on Friday, January 17th. They set a “market perform” rating for the company. Northcoast Research initiated coverage on Watsco in a report on Friday, November 22nd. They set a “neutral” rating for the company. Finally, Loop Capital increased their price target on Watsco from $450.00 to $460.00 and gave the stock a “hold” rating in a report on Thursday, February 27th. Four equities research analysts have rated the stock with a hold rating and two have given a buy rating to the company’s stock. Based on data from MarketBeat.com, Watsco currently has an average rating of “Hold” and a consensus target price of $486.25.

Watsco Trading Up 3.4 %

NYSE WSO opened at $508.47 on Friday. The stock has a market cap of $20.54 billion, a PE ratio of 38.38 and a beta of 0.92. Watsco has a twelve month low of $393.88 and a twelve month high of $571.42. The stock has a fifty day simple moving average of $489.58 and a 200-day simple moving average of $494.99.

Watsco (NYSE:WSO) last issued its earnings results on Tuesday, February 18th. The construction company reported $2.37 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.13 by $0.24. The business had revenue of $1.75 billion during the quarter, compared to the consensus estimate of $1.67 billion. Watsco had a return on equity of 17.59% and a net margin of 7.04%.

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 dividend of $2.70 per share. This represents a $10.80 dividend on an annualized basis and a yield of 2.12%. The ex-dividend date of this dividend was Friday, January 17th. Watsco’s dividend payout ratio (DPR) is 81.51%.

Insider Activity at Watsco

In other Watsco news, EVP Barry S. Logan sold 10,998 shares of the stock in a transaction dated Wednesday, December 18th. The stock was sold at an average price of $508.21, for a total value of $5,589,293.58. The transaction was disclosed in a document filed with the SEC, which is available at this link. 12.86% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Watsco

Hedge funds have recently bought and sold shares of the stock. Toronto Dominion Bank raised its position in Watsco by 32.2% in the 3rd quarter. Toronto Dominion Bank now owns 4,258 shares of the construction company’s stock valued at $2,094,000 after purchasing an additional 1,038 shares in the last quarter. Citizens Financial Group Inc. RI raised its position in Watsco by 40.6% in the 3rd quarter. Citizens Financial Group Inc. RI now owns 3,217 shares of the construction company’s stock valued at $1,582,000 after purchasing an additional 929 shares in the last quarter. Larson Financial Group LLC raised its position in Watsco by 3,571.0% in the 3rd quarter. Larson Financial Group LLC now owns 1,138 shares of the construction company’s stock valued at $560,000 after purchasing an additional 1,107 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. raised its position in Watsco by 1.7% in the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 64,758 shares of the construction company’s stock valued at $31,853,000 after purchasing an additional 1,074 shares in the last quarter. Finally, Franklin Resources Inc. raised its position in Watsco by 5.6% in the 3rd quarter. Franklin Resources Inc. now owns 51,590 shares of the construction company’s stock valued at $25,645,000 after purchasing an additional 2,738 shares in the last quarter. 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.