William Blair Comments on Watsco Inc’s Q3 2018 Earnings (WSO)

Watsco Inc (NYSE:WSO) – Stock analysts at William Blair increased their Q3 2018 earnings per share (EPS) estimates for shares of Watsco in a research note issued to investors on Thursday. William Blair analyst R. Merkel now forecasts that the construction company will post earnings per share of $2.34 for the quarter, up from their previous estimate of $2.14. William Blair also issued estimates for Watsco’s FY2018 earnings at $6.85 EPS.

Watsco (NYSE:WSO) last announced its quarterly earnings results on Thursday, February 8th. The construction company reported $0.90 EPS for the quarter, missing analysts’ consensus estimates of $1.00 by ($0.10). Watsco had a return on equity of 14.66% and a net margin of 4.80%. The company had revenue of $964.35 million during 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 business’s revenue was up 5.6% compared to the same quarter last year.

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

Shares of Watsco (NYSE WSO) opened at $164.98 on Monday. Watsco has a 12 month low of $134.08 and a 12 month high of $182.79. The company has a market cap of $5,896.55, a P/E ratio of 28.49 and a beta of 0.87. The company has a quick ratio of 1.42, a current ratio of 3.21 and a debt-to-equity ratio of 0.01.

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

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

Large investors have recently modified their holdings of the business. Advisor Group Inc. lifted its holdings in Watsco by 132.4% during the second quarter. Advisor Group Inc. now owns 1,706 shares of the construction company’s stock valued at $263,000 after purchasing an additional 972 shares in the last quarter. Royal Bank of Canada lifted its holdings in Watsco by 46.9% during the second quarter. Royal Bank of Canada now owns 12,986 shares of the construction company’s stock valued at $2,002,000 after purchasing an additional 4,146 shares in the last quarter. First Republic Investment Management Inc. lifted its holdings in Watsco by 4.9% during the third quarter. First Republic Investment Management Inc. now owns 216,932 shares of the construction company’s stock valued at $34,941,000 after purchasing an additional 10,216 shares in the last quarter. Segall Bryant & Hamill LLC lifted its holdings in Watsco by 49.7% during the third quarter. Segall Bryant & Hamill LLC now owns 126,101 shares of the construction company’s stock valued at $20,311,000 after purchasing an additional 41,882 shares in the last quarter. Finally, Schwab Charles Investment Management Inc. lifted its holdings in Watsco by 5.7% during the third quarter. Schwab Charles Investment Management Inc. now owns 192,732 shares of the construction company’s stock valued at $31,044,000 after purchasing an additional 10,376 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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