Zacks Research Has Bullish Forecast for Watsco Q1 Earnings

Watsco, Inc. (NYSE:WSO) – Zacks Research upped their Q1 2025 earnings per share estimates for shares of Watsco in a research report issued to clients and investors on Tuesday, March 11th. Zacks Research analyst R. Department now forecasts that the construction company will post earnings per share of $2.27 for the quarter, up from their previous estimate of $2.25. The consensus estimate for Watsco’s current full-year earnings is $14.62 per share. Zacks Research also issued estimates for Watsco’s Q3 2026 earnings at $5.32 EPS, Q4 2026 earnings at $2.85 EPS and FY2026 earnings at $15.93 EPS.

Several other research analysts have also commented on the company. Northcoast Research assumed coverage on Watsco in a research report on Friday, November 22nd. They set a “neutral” rating on the stock. Raymond James assumed coverage on Watsco in a research report on Friday, January 17th. They set a “market perform” rating on the stock. Robert W. Baird lifted their price target on Watsco from $540.00 to $560.00 and gave the stock an “outperform” rating in a research report on Wednesday, February 19th. Finally, Loop Capital lifted their price target on Watsco from $450.00 to $460.00 and gave the stock a “hold” rating in a research report on Thursday, February 27th. Four investment analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $486.25.

Watsco Stock Performance

Shares of NYSE WSO opened at $508.47 on Friday. The firm has a market capitalization of $20.54 billion, a PE ratio of 38.38 and a beta of 0.92. Watsco has a fifty-two week low of $393.88 and a fifty-two week high of $571.42. The stock’s 50-day simple moving average is $489.58 and its 200-day simple moving average is $494.99.

Watsco (NYSE:WSO) last issued its earnings results on Tuesday, February 18th. The construction company reported $2.37 earnings per share for the quarter, topping the consensus estimate of $2.13 by $0.24. Watsco had a return on equity of 17.59% and a net margin of 7.04%. The business had revenue of $1.75 billion for the quarter, compared to analyst estimates of $1.67 billion.

Watsco Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, January 31st. Shareholders of record on Friday, January 17th were paid a $2.70 dividend. The ex-dividend date of this dividend was Friday, January 17th. This represents a $10.80 annualized dividend and a dividend yield of 2.12%. Watsco’s dividend payout ratio (DPR) is currently 81.51%.

Insider Buying and Selling at Watsco

In other Watsco news, EVP Barry S. Logan sold 10,998 shares of Watsco stock in a transaction that occurred on Wednesday, December 18th. The stock was sold at an average price of $508.21, for a total value of $5,589,293.58. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Company insiders own 12.86% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of WSO. Assetmark Inc. grew its stake in shares of Watsco by 6.4% in the 3rd quarter. Assetmark Inc. now owns 612 shares of the construction company’s stock valued at $301,000 after purchasing an additional 37 shares during the last quarter. Crossmark Global Holdings Inc. boosted its stake in shares of Watsco by 16.0% in the third quarter. Crossmark Global Holdings Inc. now owns 2,510 shares of the construction company’s stock valued at $1,234,000 after buying an additional 347 shares in the last quarter. Ashton Thomas Securities LLC purchased a new stake in shares of Watsco in the third quarter valued at approximately $43,000. GSA Capital Partners LLP purchased a new stake in shares of Watsco in the third quarter valued at approximately $962,000. Finally, Sumitomo Mitsui Trust Group Inc. boosted its stake in shares of Watsco by 1.7% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 64,758 shares of the construction company’s stock valued at $31,853,000 after buying an additional 1,074 shares in the last quarter. 89.71% of the stock is currently owned by hedge funds and other institutional investors.

About Watsco

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.