What is Zacks Research’s Forecast for Watsco Q4 Earnings?

Watsco, Inc. (NYSE:WSO) – Equities research analysts at Zacks Research decreased their Q4 2025 earnings per share (EPS) estimates for Watsco in a note issued to investors on Wednesday, January 14th. Zacks Research analyst Team now anticipates that the construction company will post earnings of $1.95 per share for the quarter, down from their previous forecast of $1.96. Zacks Research currently has a “Strong Sell” rating on the stock. The consensus estimate for Watsco’s current full-year earnings is $14.62 per share. Zacks Research also issued estimates for Watsco’s Q4 2026 earnings at $2.13 EPS and Q4 2027 earnings at $2.27 EPS.

Several other analysts also recently issued reports on WSO. Wolfe Research set a $349.00 target price on Watsco in a research note on Tuesday, December 9th. William Blair reiterated a “market perform” rating on shares of Watsco in a research report on Wednesday, October 15th. Mizuho dropped their target price on shares of Watsco from $400.00 to $370.00 and set a “neutral” rating for the company in a research report on Monday, January 5th. UBS Group started coverage on shares of Watsco in a research note on Monday, January 5th. They set a “neutral” rating and a $370.00 target price for the company. Finally, KeyCorp reiterated a “sector weight” rating on shares of Watsco in a research note on Friday, December 12th. One investment analyst has rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $404.14.

Watsco Stock Up 0.4%

Shares of Watsco stock opened at $381.78 on Monday. The company has a market capitalization of $15.48 billion, a price-to-earnings ratio of 29.83 and a beta of 1.03. The stock’s 50-day simple moving average is $349.42 and its 200-day simple moving average is $388.96. Watsco has a 52 week low of $323.05 and a 52 week high of $535.40.

Watsco (NYSE:WSO) last released its earnings results on Friday, November 7th. The construction company reported $3.98 earnings per share for the quarter. Watsco had a return on equity of 16.48% and a net margin of 7.04%.The company had revenue of $2.07 billion for the quarter.

Hedge Funds Weigh In On Watsco

Several institutional investors have recently bought and sold shares of the business. Ameritas Advisory Services LLC bought a new stake in shares of Watsco in the 2nd quarter worth about $26,000. SJS Investment Consulting Inc. grew its position in Watsco by 2,366.7% in the third quarter. SJS Investment Consulting Inc. now owns 74 shares of the construction company’s stock worth $30,000 after acquiring an additional 71 shares in the last quarter. TD Waterhouse Canada Inc. grew its position in Watsco by 242.9% in the second quarter. TD Waterhouse Canada Inc. now owns 72 shares of the construction company’s stock worth $33,000 after acquiring an additional 51 shares in the last quarter. Chilton Capital Management LLC bought a new stake in Watsco during the second quarter worth approximately $34,000. Finally, TruNorth Capital Management LLC purchased a new stake in Watsco during the third quarter valued at approximately $37,000. Institutional investors own 89.71% of the company’s stock.

Watsco Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, January 30th. Investors of record on Friday, January 16th will be paid a dividend of $3.00 per share. The ex-dividend date of this dividend is Friday, January 16th. This represents a $12.00 dividend on an annualized basis and a yield of 3.1%. Watsco’s dividend payout ratio is presently 93.75%.

About Watsco

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.