What is William Blair’s Estimate for Watsco FY2025 Earnings?

Watsco, Inc. (NYSE:WSO) – Equities researchers at William Blair increased their FY2025 earnings estimates for shares of Watsco in a research note issued on Tuesday, September 2nd. William Blair analyst R. Merkel now anticipates that the construction company will earn $13.50 per share for the year, up from their prior forecast of $13.35. 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 $2.51 EPS, Q2 2026 earnings at $4.59 EPS, Q3 2026 earnings at $4.85 EPS, Q4 2026 earnings at $2.78 EPS, FY2026 earnings at $14.60 EPS and FY2027 earnings at $16.53 EPS.

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

WSO has been the subject of several other research reports. JPMorgan Chase & Co. upped their price target on shares of Watsco from $445.00 to $460.00 and gave the stock a “neutral” rating in a research report on Tuesday, May 27th. Wall Street Zen raised shares of Watsco from a “sell” rating to a “hold” rating in a research report on Friday, May 9th. Morgan Stanley set a $505.00 price target on shares of Watsco in a research report on Wednesday, July 2nd. Finally, UBS Group lowered their price target on shares of Watsco from $455.00 to $450.00 and set a “neutral” rating for the company in a research report on Wednesday, June 25th. One analyst has rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $484.17.

Watsco Stock Performance

Shares of WSO opened at $408.41 on Friday. The company has a 50 day moving average price of $439.49 and a 200-day moving average price of $464.03. Watsco has a fifty-two week low of $390.36 and a fifty-two week high of $571.41. The stock has a market capitalization of $16.56 billion, a PE ratio of 31.32 and a beta of 0.95.

Watsco Dividend Announcement

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

Institutional Trading of Watsco

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Cary Street Partners Financial LLC acquired a new stake in shares of Watsco in the fourth quarter valued at about $498,000. Bridgefront Capital LLC acquired a new stake in shares of Watsco during the fourth quarter valued at about $203,000. Cetera Investment Advisers increased its position in shares of Watsco by 5.3% during the fourth quarter. Cetera Investment Advisers now owns 7,929 shares of the construction company’s stock valued at $3,757,000 after acquiring an additional 398 shares during the last quarter. CoreCap Advisors LLC increased its position in shares of Watsco by 7.6% during the fourth quarter. CoreCap Advisors LLC now owns 3,357 shares of the construction company’s stock valued at $1,591,000 after acquiring an additional 236 shares during the last quarter. Finally, EP Wealth Advisors LLC increased its position in shares of Watsco by 41.0% during the fourth quarter. EP Wealth Advisors LLC now owns 760 shares of the construction company’s stock valued at $360,000 after acquiring an additional 221 shares during the last quarter. 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.