Zacks Research Issues Negative Estimate for Watsco Earnings

Watsco, Inc. (NYSE:WSO) – Analysts at Zacks Research cut their Q2 2026 earnings per share estimates for shares of Watsco in a note issued to investors on Tuesday, May 19th. Zacks Research analyst Team now anticipates that the construction company will post earnings per share of $4.25 for the quarter, down from their prior estimate of $4.27. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for Watsco’s current full-year earnings is $12.70 per share. Zacks Research also issued estimates for Watsco’s Q4 2026 earnings at $2.15 EPS, FY2027 earnings at $13.70 EPS, Q1 2028 earnings at $1.93 EPS and FY2028 earnings at $14.93 EPS.

Watsco (NYSE:WSO) last posted its earnings results on Tuesday, April 28th. The construction company reported $1.87 EPS for the quarter, beating analysts’ consensus estimates of $1.73 by $0.14. Watsco had a return on equity of 15.31% and a net margin of 6.85%.The firm had revenue of $1.53 billion for the quarter, compared to analysts’ expectations of $1.49 billion. During the same period last year, the firm earned $1.93 EPS. The company’s quarterly revenue was up .1% on a year-over-year basis.

Several other equities analysts have also weighed in on the company. Wall Street Zen upgraded Watsco from a “sell” rating to a “hold” rating in a research note on Saturday, May 2nd. Stephens lifted their price target on Watsco from $475.00 to $485.00 and gave the company an “overweight” rating in a research note on Wednesday, April 29th. Mizuho set a $425.00 price target on Watsco in a research note on Wednesday, February 18th. Finally, JPMorgan Chase & Co. lifted their price target on Watsco from $370.00 to $400.00 and gave the company a “neutral” rating in a research note on Thursday, February 19th. One equities research analyst has rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and an average target price of $399.83.

Watsco Stock Down 0.1%

Shares of Watsco stock opened at $386.53 on Thursday. Watsco has a twelve month low of $323.05 and a twelve month high of $494.94. The business has a 50-day moving average price of $399.50 and a 200 day moving average price of $381.07. The firm has a market cap of $15.72 billion, a PE ratio of 32.08 and a beta of 1.12.

Institutional Investors Weigh In On Watsco

Several institutional investors have recently bought and sold shares of the company. Western Wealth Management LLC acquired a new stake in Watsco in the 1st quarter worth about $41,000. Bank of America Corp DE boosted its holdings in Watsco by 12.2% in the 1st quarter. Bank of America Corp DE now owns 239,606 shares of the construction company’s stock worth $87,166,000 after buying an additional 26,003 shares during the last quarter. Intrinsic Edge Capital Management LLC acquired a new stake in Watsco in the 1st quarter worth about $14,552,000. Centaurus Financial Inc. boosted its holdings in Watsco by 10.0% in the 1st quarter. Centaurus Financial Inc. now owns 10,373 shares of the construction company’s stock worth $3,774,000 after buying an additional 939 shares during the last quarter. Finally, Royal Bank of Canada boosted its holdings in Watsco by 4.7% in the 1st quarter. Royal Bank of Canada now owns 144,173 shares of the construction company’s stock worth $52,448,000 after buying an additional 6,517 shares during the last quarter. 89.71% of the stock is currently owned by institutional investors and hedge funds.

Watsco Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, April 30th. Investors of record on Thursday, April 16th were issued a $3.30 dividend. This represents a $13.20 annualized dividend and a yield of 3.4%. The ex-dividend date was Thursday, April 16th. This is a positive change from Watsco’s previous quarterly dividend of $3.00. Watsco’s payout ratio is presently 109.54%.

Watsco Company Profile

Watsco, Inc is the largest distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment, parts and supplies in the United States. Headquartered in Miami, Florida, the company operates a network of more than 600 branches across the continental U.S., Canada and Puerto Rico. Watsco serves residential and commercial contractors by providing essential components for climate control systems, including air conditioners, furnaces, heat pumps, coils, refrigerants, controls and electrical and piping supplies.

Founded in 1947, Watsco has grown from a single regional distributor into an industry leader through a combination of organic expansion, acquisitions and strategic partnerships with original equipment manufacturers such as Carrier, Trane, Goodman and Lennox.