Watsco, Inc. Forecasted to Post Q1 2024 Earnings of $2.23 Per Share (NYSE:WSO)

Watsco, Inc. (NYSE:WSO) – Stock analysts at Zacks Research reduced their Q1 2024 EPS estimates for Watsco in a research report issued on Monday, April 15th. Zacks Research analyst R. Department now anticipates that the construction company will post earnings of $2.23 per share for the quarter, down from their prior estimate of $2.31. The consensus estimate for Watsco’s current full-year earnings is $14.17 per share. Zacks Research also issued estimates for Watsco’s Q2 2024 earnings at $4.85 EPS, Q4 2024 earnings at $2.20 EPS, Q1 2025 earnings at $2.97 EPS, Q4 2025 earnings at $3.29 EPS, Q1 2026 earnings at $3.59 EPS and FY2026 earnings at $17.96 EPS.

Separately, Robert W. Baird raised their price objective on shares of Watsco from $400.00 to $410.00 and gave the stock an “outperform” rating in a report on Wednesday, February 14th. One research analyst has rated the stock with a sell rating, four have given a hold rating and four have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, Watsco currently has an average rating of “Hold” and a consensus price target of $396.00.

Watsco Price Performance

WSO stock opened at $403.94 on Tuesday. The business has a 50 day moving average price of $409.14 and a 200 day moving average price of $398.02. The company has a quick ratio of 1.47, a current ratio of 3.36 and a debt-to-equity ratio of 0.01. The stock has a market cap of $15.96 billion, a price-to-earnings ratio of 29.57 and a beta of 0.90. Watsco has a fifty-two week low of $313.27 and a fifty-two week high of $447.49.

Watsco (NYSE:WSO) last announced its quarterly earnings results on Tuesday, February 13th. The construction company reported $2.06 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.50 by ($0.44). Watsco had a return on equity of 21.36% and a net margin of 7.36%. The business had revenue of $1.60 billion for the quarter, compared to analysts’ expectations of $1.65 billion. During the same period last year, the firm earned $2.35 earnings per share. The firm’s quarterly revenue was up 1.4% on a year-over-year basis.

Institutional Investors Weigh In On Watsco

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Wetzel Investment Advisors Inc. acquired a new position in shares of Watsco in the 4th quarter valued at $25,000. First PREMIER Bank acquired a new position in Watsco in the first quarter valued at $25,000. Contravisory Investment Management Inc. purchased a new stake in shares of Watsco in the fourth quarter valued at about $26,000. Cullen Frost Bankers Inc. purchased a new stake in shares of Watsco in the fourth quarter valued at about $28,000. Finally, Rise Advisors LLC acquired a new stake in shares of Watsco during the fourth quarter worth about $30,000. Hedge funds and other institutional investors own 89.71% of the company’s stock.

Watsco Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, April 30th. Shareholders of record on Monday, April 15th will be given a dividend of $2.70 per share. This is a positive change from Watsco’s previous quarterly dividend of $2.45. The ex-dividend date of this dividend is Friday, April 12th. This represents a $10.80 annualized dividend and a yield of 2.67%. Watsco’s payout ratio is 79.06%.

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.