Watsco Stock Gets Reduced EPS Forecast from Zacks Research

Watsco, Inc. (NYSE:WSO) – Equities research analysts at Zacks Research dropped their Q3 2028 earnings per share estimates for Watsco in a research report issued on Wednesday, September 23rd. Zacks Research analyst Team now anticipates that the construction company will earn $5.20 per share for the quarter, down from their prior forecast of $5.24. Zacks Research currently has a “Strong Sell” rating on the stock. The consensus estimate for Watsco’s current full-year earnings is $12.21 per share.

Watsco (NYSE:WSO) last released its quarterly earnings data on Wednesday, July 29th. The construction company reported $4.00 EPS for the quarter, missing the consensus estimate of $4.41 by ($0.41). Watsco had a return on equity of 14.40% and a net margin of 6.53%.The business had revenue of $2.10 billion during the quarter, compared to the consensus estimate of $2.14 billion. During the same quarter in the previous year, the business posted $4.52 earnings per share. Watsco’s quarterly revenue was up 2.1% compared to the same quarter last year.

A number of other analysts have also commented on the stock. Morgan Stanley lifted their price target on shares of Watsco from $370.00 to $405.00 and gave the stock an “equal weight” rating in a research note on Friday, July 10th. Weiss Ratings restated a “hold (c)” rating on shares of Watsco in a report on Tuesday, September 22nd. Robert W. Baird set a $400.00 target price on shares of Watsco in a research report on Thursday, July 30th. Stephens reiterated an “overweight” rating and set a $485.00 target price on shares of Watsco in a research note on Monday, August 17th. Finally, DA Davidson lowered their price target on Watsco from $385.00 to $330.00 and set a “neutral” rating on the stock in a report on Thursday, July 30th. Two investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $395.50.

Watsco Stock Performance

Shares of NYSE:WSO opened at $301.36 on Friday. The firm has a market cap of $12.43 billion, a price-to-earnings ratio of 26.14 and a beta of 1.06. The business has a 50-day simple moving average of $317.27 and a two-hundred day simple moving average of $366.51. Watsco has a fifty-two week low of $295.75 and a fifty-two week high of $459.00.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in WSO. Capital International Investors grew its holdings in Watsco by 103.1% during the 4th quarter. Capital International Investors now owns 4,642,893 shares of the construction company’s stock valued at $1,564,423,000 after purchasing an additional 2,356,998 shares during the last quarter. Markel Group Inc. lifted its stake in Watsco by 0.8% in the first quarter. Markel Group Inc. now owns 582,169 shares of the construction company’s stock worth $211,787,000 after purchasing an additional 4,500 shares during the last quarter. Captrust Financial Advisors boosted its position in shares of Watsco by 1.5% during the fourth quarter. Captrust Financial Advisors now owns 396,514 shares of the construction company’s stock valued at $133,605,000 after buying an additional 6,034 shares during the period. Bank of America Corp DE purchased a new position in shares of Watsco during the second quarter valued at approximately $119,291,000. Finally, Norges Bank bought a new position in shares of Watsco during the fourth quarter valued at approximately $110,853,000. Hedge funds and other institutional investors own 89.71% of the company’s stock.

Watsco Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Friday, October 16th will be issued a $3.30 dividend. The ex-dividend date is Friday, October 16th. This represents a $13.20 dividend on an annualized basis and a dividend yield of 4.4%. Watsco’s payout ratio is 114.48%.

About Watsco

Watsco, Inc (NYSE: WSO) is a distributor of heating, air conditioning and refrigeration equipment and related products. The company supplies residential and commercial contractors with air conditioners, heat pumps, furnaces, refrigeration systems, indoor air-quality products, controls, replacement parts and other installation supplies.

Watsco serves the replacement and new-construction markets through a network of distribution centers, branches, showrooms and e-commerce platforms. Its customers primarily include HVAC and refrigeration contractors, dealers and other industry professionals, while its products are sourced from major manufacturers and distributed under leading industry brands.

Founded in 1956, Watsco has expanded through organic growth and acquisitions to become one of the largest HVAC and refrigeration distributors in North America.