William Blair Issues Negative Estimate for Watsco Earnings

Watsco, Inc. (NYSE:WSO) – Research analysts at William Blair dropped their Q2 2025 EPS estimates for Watsco in a research report issued on Monday, July 14th. William Blair analyst R. Merkel now forecasts that the construction company will post earnings per share of $4.71 for the quarter, down from their prior forecast of $5.10. The consensus estimate for Watsco’s current full-year earnings is $14.62 per share. William Blair also issued estimates for Watsco’s Q4 2025 earnings at $2.55 EPS, FY2025 earnings at $14.23 EPS, Q2 2026 earnings at $4.97 EPS, FY2026 earnings at $15.37 EPS and FY2027 earnings at $17.15 EPS.

Watsco (NYSE:WSO) last announced its earnings results on Wednesday, April 23rd. The construction company reported $1.93 EPS for the quarter, missing the consensus estimate of $2.29 by ($0.36). Watsco had a return on equity of 17.13% and a net margin of 6.98%. The business had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.66 billion. During the same quarter in the previous year, the company posted $2.17 EPS. The business’s revenue for the quarter was down 2.2% compared to the same quarter last year.

Several other analysts have also issued reports on the company. Morgan Stanley set a $505.00 target price on Watsco in a report on Wednesday, July 2nd. Mizuho set a $490.00 price objective on Watsco in a research note on Thursday, April 24th. UBS Group cut their price objective on Watsco from $455.00 to $450.00 and set a “neutral” rating for the company in a report on Wednesday, June 25th. JPMorgan Chase & Co. raised their target price on shares of Watsco from $445.00 to $460.00 and gave the company a “neutral” rating in a research note on Tuesday, May 27th. Finally, Wall Street Zen raised shares of Watsco from a “sell” rating to a “hold” rating in a research report on Friday, May 9th. Seven research analysts have rated the stock with a hold rating and one has issued a buy rating to the stock. According to MarketBeat, Watsco presently has an average rating of “Hold” and an average target price of $484.17.

Watsco Price Performance

Watsco stock opened at $472.18 on Tuesday. The company has a market cap of $19.13 billion, a price-to-earnings ratio of 36.29 and a beta of 1.04. The firm has a 50-day moving average of $453.22 and a 200-day moving average of $476.79. Watsco has a one year low of $418.31 and a one year high of $571.42.

Institutional Investors Weigh In On Watsco

Several hedge funds have recently added to or reduced their stakes in the business. OneDigital Investment Advisors LLC bought a new position in shares of Watsco in the first quarter valued at about $266,000. Teacher Retirement System of Texas bought a new stake in shares of Watsco during the 1st quarter worth about $2,588,000. Golden State Wealth Management LLC grew its stake in Watsco by 109.4% in the 1st quarter. Golden State Wealth Management LLC now owns 222 shares of the construction company’s stock valued at $113,000 after buying an additional 116 shares during the last quarter. SG Americas Securities LLC raised its holdings in Watsco by 133.1% in the 1st quarter. SG Americas Securities LLC now owns 844 shares of the construction company’s stock valued at $429,000 after acquiring an additional 482 shares during the period. Finally, Fifth Third Bancorp raised its holdings in Watsco by 4.8% in the 1st quarter. Fifth Third Bancorp now owns 1,028 shares of the construction company’s stock valued at $523,000 after acquiring an additional 47 shares during the period. Institutional investors and hedge funds own 89.71% of the company’s stock.

Watsco Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, July 31st. Investors of record on Wednesday, July 16th will be issued a dividend of $3.00 per share. This represents a $12.00 dividend on an annualized basis and a dividend yield of 2.54%. The ex-dividend date is Wednesday, July 16th. Watsco’s payout ratio is presently 92.24%.

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.