Zacks Research Comments on Watsco, Inc.’s Q1 2024 Earnings (NYSE:WSO)

Watsco, Inc. (NYSE:WSO) – Zacks Research lowered their Q1 2024 earnings per share (EPS) estimates for Watsco in a research report issued on Monday, April 15th. Zacks Research analyst R. Department now expects that the construction company will earn $2.23 per share for the quarter, down from their previous forecast of $2.31. The consensus estimate for Watsco’s current full-year earnings is $14.17 per share. Zacks Research also issued estimates for Watsco’s Q2 2024 earnings at $4.85 EPS, Q4 2024 earnings at $2.20 EPS, Q1 2025 earnings at $2.97 EPS, Q4 2025 earnings at $3.29 EPS, Q1 2026 earnings at $3.59 EPS and FY2026 earnings at $17.96 EPS.

Separately, Robert W. Baird raised their price target on Watsco from $400.00 to $410.00 and gave the company an “outperform” rating in a report on Wednesday, February 14th. One investment analyst has rated the stock with a sell rating, four have given a hold rating and four have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $396.00.

Watsco Price Performance

Shares of WSO stock opened at $413.33 on Tuesday. The stock has a 50 day moving average of $409.11 and a two-hundred day moving average of $397.98. The company has a current ratio of 3.36, a quick ratio of 1.47 and a debt-to-equity ratio of 0.01. Watsco has a 12 month low of $310.20 and a 12 month high of $447.49. The company has a market capitalization of $16.33 billion, a P/E ratio of 30.26 and a beta of 0.89.

Watsco (NYSE:WSO) last posted its quarterly earnings results on Tuesday, February 13th. The construction company reported $2.06 earnings per share for the quarter, missing the consensus estimate of $2.50 by ($0.44). The business had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.65 billion. Watsco had a net margin of 7.36% and a return on equity of 21.36%. The firm’s quarterly revenue was up 1.4% on a year-over-year basis. During the same period in the previous year, the firm posted $2.35 earnings per share.

Hedge Funds Weigh In On Watsco

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Hartford Financial Management Inc. boosted its holdings in Watsco by 53.1% in the fourth quarter. Hartford Financial Management Inc. now owns 75 shares of the construction company’s stock worth $32,000 after purchasing an additional 26 shares during the last quarter. Advisor OS LLC raised its position in Watsco by 1.1% in the third quarter. Advisor OS LLC now owns 2,693 shares of the construction company’s stock worth $1,017,000 after acquiring an additional 28 shares during the period. Raleigh Capital Management Inc. raised its position in Watsco by 35.0% in the third quarter. Raleigh Capital Management Inc. now owns 108 shares of the construction company’s stock worth $41,000 after acquiring an additional 28 shares during the period. Lindbrook Capital LLC raised its position in Watsco by 53.8% in the fourth quarter. Lindbrook Capital LLC now owns 80 shares of the construction company’s stock worth $34,000 after acquiring an additional 28 shares during the period. Finally, Lincoln National Corp raised its position in Watsco by 4.0% in the fourth quarter. Lincoln National Corp now owns 728 shares of the construction company’s stock worth $312,000 after acquiring an additional 28 shares during the period. Hedge funds and other institutional investors own 89.71% of the company’s stock.

Watsco Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, April 30th. Investors of record on Monday, April 15th will be given a dividend of $2.70 per share. The ex-dividend date of this dividend is Friday, April 12th. This represents a $10.80 annualized dividend and a dividend yield of 2.61%. This is a boost from Watsco’s previous quarterly dividend of $2.45. Watsco’s payout ratio is currently 79.06%.

Watsco Company Profile

Watsco, Inc, together with its subsidiaries, engages in the distribution of air conditioning, heating, refrigeration equipment, and related parts and supplies in the United States and internationally. The company distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment.