Watsco Inc Expected to Earn Q2 2018 Earnings of $2.56 Per Share (WSO)

Watsco Inc (NYSE:WSO) – Stock analysts at Seaport Global Securities boosted their Q2 2018 earnings per share (EPS) estimates for shares of Watsco in a research report issued on Friday. Seaport Global Securities analyst W. Liptak now forecasts that the construction company will post earnings of $2.56 per share for the quarter, up from their previous forecast of $2.38. Seaport Global Securities also issued estimates for Watsco’s Q3 2018 earnings at $2.39 EPS, FY2018 earnings at $6.99 EPS, Q1 2019 earnings at $1.01 EPS, Q2 2019 earnings at $2.94 EPS, Q3 2019 earnings at $2.66 EPS, Q4 2019 earnings at $1.45 EPS and FY2019 earnings at $8.06 EPS.

Watsco (NYSE:WSO) last released its quarterly earnings results on Thursday, February 8th. The construction company reported $0.90 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $1.00 by ($0.10). Watsco had a net margin of 4.80% and a return on equity of 14.66%. The firm had revenue of $964.35 million for the quarter, compared to the consensus estimate of $965.85 million. During the same quarter in the prior year, the firm earned $0.81 earnings per share. The company’s revenue for the quarter was up 5.6% compared to the same quarter last year.

Several other research firms have also weighed in on WSO. Zacks Investment Research lowered Watsco from a “buy” rating to a “hold” rating in a research report on Saturday. Morgan Stanley lifted their price target on Watsco from $151.00 to $156.00 and gave the company an “underweight” rating in a research report on Thursday, October 26th. Susquehanna Bancshares set a $195.00 price target on Watsco and gave the company a “buy” rating in a research report on Friday. Stephens set a $169.00 price target on Watsco and gave the company a “hold” rating in a research report on Thursday. Finally, KeyCorp restated a “buy” rating on shares of Watsco in a research report on Friday, November 17th. One research analyst has rated the stock with a sell rating, four have given a hold rating and five have given a buy rating to the company. The stock currently has an average rating of “Hold” and a consensus price target of $170.71.

Shares of Watsco (WSO) opened at $164.98 on Monday. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.42 and a current ratio of 3.21. Watsco has a 1 year low of $134.08 and a 1 year high of $182.79. The firm has a market capitalization of $5,896.55, a P/E ratio of 28.49 and a beta of 0.87.

The business also recently announced a quarterly dividend, which was paid on Wednesday, January 31st. Shareholders of record on Tuesday, January 16th were issued a $1.25 dividend. This represents a $5.00 annualized dividend and a yield of 3.03%. The ex-dividend date was Friday, January 12th. Watsco’s dividend payout ratio (DPR) is 86.36%.

In other Watsco news, SVP Barry S. Logan sold 3,246 shares of the business’s stock in a transaction on Wednesday, November 22nd. The stock was sold at an average price of $164.30, for a total value of $533,317.80. Following the sale, the senior vice president now directly owns 15,800 shares of the company’s stock, valued at $2,595,940. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 13.93% of the company’s stock.

A number of institutional investors have recently added to or reduced their stakes in WSO. BlackRock Inc. boosted its holdings in Watsco by 4.1% in the fourth quarter. BlackRock Inc. now owns 2,682,903 shares of the construction company’s stock worth $456,201,000 after acquiring an additional 105,677 shares in the last quarter. DF Dent & Co. Inc. boosted its holdings in Watsco by 25.7% in the third quarter. DF Dent & Co. Inc. now owns 430,125 shares of the construction company’s stock worth $69,280,000 after acquiring an additional 88,072 shares in the last quarter. Riverbridge Partners LLC boosted its holdings in Watsco by 68.4% in the third quarter. Riverbridge Partners LLC now owns 163,063 shares of the construction company’s stock worth $26,265,000 after acquiring an additional 66,240 shares in the last quarter. APG Asset Management N.V. bought a new stake in Watsco in the fourth quarter worth $7,802,000. Finally, Victory Capital Management Inc. boosted its holdings in Watsco by 471.9% in the third quarter. Victory Capital Management Inc. now owns 63,144 shares of the construction company’s stock worth $10,171,000 after acquiring an additional 52,103 shares in the last quarter. 82.68% of the stock is currently owned by institutional investors and hedge funds.

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About Watsco

Watsco, Inc is a distributor of air conditioning, heating and refrigeration equipment, and related parts and supplies (HVAC/R) in the HVAC/R distribution industry in North America. As of December 31, 2016, the Company sold a range of non-equipment products, representing more than 300,000 stock keeping units, including parts, ductwork, air movement products, insulation, tools, installation supplies, thermostats and air quality products.

Earnings History and Estimates for Watsco (NYSE:WSO)

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