Analysts Issue Forecasts for Watsco’s Q3 Earnings (NYSE:WSO)

Watsco, Inc. (NYSE:WSO) – Research analysts at William Blair lowered their Q3 2025 earnings per share (EPS) estimates for Watsco in a note issued to investors on Tuesday, September 2nd. William Blair analyst R. Merkel now expects that the construction company will post earnings per share of $4.54 for the quarter, down from their prior forecast of $4.66. The consensus estimate for Watsco’s current full-year earnings is $14.62 per share. William Blair also issued estimates for Watsco’s Q1 2026 earnings at $2.38 EPS.

Watsco (NYSE:WSO) last issued its quarterly earnings data on Wednesday, July 30th. The construction company reported $4.52 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.84 by ($0.32). The company had revenue of $2.06 billion for the quarter, compared to the consensus estimate of $2.24 billion. Watsco had a return on equity of 16.96% and a net margin of 7.08%.Watsco’s revenue was down 3.6% compared to the same quarter last year. During the same quarter last year, the business earned $4.49 earnings per share.

A number of other equities research analysts also recently weighed in on the company. UBS Group lowered their target price 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. lifted their target price on Watsco from $445.00 to $460.00 and gave the stock a “neutral” rating in a report on Tuesday, May 27th. Morgan Stanley set a $505.00 target price on Watsco in a report on Wednesday, July 2nd. Finally, Wall Street Zen upgraded Watsco from a “sell” rating to a “hold” rating in a report on Friday, May 9th. One investment analyst has rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Watsco currently has a consensus rating of “Hold” and an average target price of $484.17.

Watsco Stock Performance

Shares of WSO stock opened at $408.41 on Thursday. The company has a market cap of $16.56 billion, a P/E ratio of 31.32 and a beta of 0.95. The stock has a 50 day simple moving average of $439.49 and a two-hundred day simple moving average of $464.03. Watsco has a fifty-two week low of $390.36 and a fifty-two week high of $571.41.

Watsco Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 31st. Shareholders of record on Wednesday, July 16th were paid a $3.00 dividend. This represents a $12.00 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend was Wednesday, July 16th. Watsco’s dividend payout ratio (DPR) is 92.02%.

Institutional Investors Weigh In On Watsco

A number of hedge funds have recently added to or reduced their stakes in WSO. GAMMA Investing LLC grew its stake in Watsco by 89,376.0% in the first quarter. GAMMA Investing LLC now owns 477,802 shares of the construction company’s stock valued at $242,867,000 after acquiring an additional 477,268 shares during the period. Norges Bank purchased a new position in shares of Watsco during the second quarter valued at approximately $84,826,000. Goldman Sachs Group Inc. boosted its position in shares of Watsco by 62.8% during the first quarter. Goldman Sachs Group Inc. now owns 468,875 shares of the construction company’s stock valued at $238,329,000 after buying an additional 180,951 shares during the last quarter. Corient Private Wealth LLC boosted its position in shares of Watsco by 106.4% during the second quarter. Corient Private Wealth LLC now owns 296,170 shares of the construction company’s stock valued at $130,801,000 after buying an additional 152,662 shares during the last quarter. Finally, Jacobs Levy Equity Management Inc. purchased a new position in shares of Watsco during the first quarter valued at approximately $54,536,000. Institutional investors and hedge funds own 89.71% of the company’s stock.

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.