Zacks Research Weighs in on Watsco’s Q2 Earnings (NYSE:WSO)

Watsco, Inc. (NYSE:WSO) – Zacks Research dropped their Q2 2027 earnings estimates for shares of Watsco in a report released on Wednesday, September 23rd. Zacks Research analyst Team now expects that the construction company will post earnings per share of $4.58 for the quarter, down from their prior estimate of $4.61. The consensus estimate for Watsco’s current full-year earnings is $12.21 per share. Zacks Research also issued estimates for Watsco’s Q3 2027 earnings at $4.58 EPS, Q4 2027 earnings at $2.16 EPS and FY2027 earnings at $13.26 EPS.

Several other research analysts have also weighed in on the company. DA Davidson dropped their price target on Watsco from $385.00 to $330.00 and set a “neutral” rating on the stock in a research report on Thursday, July 30th. Stephens restated an “overweight” rating and set a $485.00 price objective on shares of Watsco in a research report on Monday, August 17th. Morgan Stanley upped their target price on Watsco from $370.00 to $405.00 and gave the company an “equal weight” rating in a report on Friday, July 10th. Robert W. Baird set a $400.00 price target on shares of Watsco in a research report on Thursday, July 30th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Watsco in a report on Friday, June 26th. Two investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. According to MarketBeat.com, Watsco currently has a consensus rating of “Hold” and an average target price of $395.50.

Watsco Stock Up 0.1%

Shares of Watsco stock opened at $325.79 on Thursday. The stock has a market cap of $13.44 billion, a PE ratio of 28.26 and a beta of 1.05. The business has a fifty day simple moving average of $324.61 and a 200-day simple moving average of $369.45. Watsco has a 12 month low of $295.75 and a 12 month high of $459.00.

Watsco (NYSE:WSO) last announced its earnings results on Wednesday, July 29th. The construction company reported $4.00 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.41 by ($0.41). The firm had revenue of $2.10 billion for the quarter, compared to analyst estimates of $2.14 billion. Watsco had a net margin of 6.53% and a return on equity of 14.40%. Watsco’s revenue for the quarter was up 2.1% compared to the same quarter last year. During the same period last year, the firm earned $4.52 earnings per share.

Watsco Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Thursday, July 16th were given a dividend of $3.30 per share. The ex-dividend date of this dividend was Thursday, July 16th. This represents a $13.20 dividend on an annualized basis and a yield of 4.1%. Watsco’s dividend payout ratio (DPR) is presently 114.48%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Bayban purchased a new stake in shares of Watsco during the 4th quarter worth about $29,000. Western Wealth Management LLC acquired a new position in Watsco in the first quarter worth approximately $41,000. Versant Capital Management Inc increased its holdings in Watsco by 293.3% in the second quarter. Versant Capital Management Inc now owns 118 shares of the construction company’s stock worth $49,000 after buying an additional 88 shares during the last quarter. Commonwealth Retirement Investments LLC acquired a new position in Watsco in the fourth quarter worth approximately $44,000. Finally, N.E.W. Advisory Services LLC bought a new position in Watsco during the second quarter valued at approximately $67,000. Hedge funds and other institutional investors own 89.71% of the company’s stock.

About Watsco

Watsco, Inc is a distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment and related products. The company supplies residential and commercial contractors with air conditioners, furnaces, heat pumps, refrigeration systems, ductwork, thermostats, controls, tools, replacement parts and other installation supplies.

Through its distribution network and digital sales platforms, Watsco serves HVAC/R contractors, dealers and other customers primarily across the United States, as well as in Canada and Puerto Rico.