Brokers Set Expectations for Watsco’s Q1 Earnings (NYSE:WSO)

Watsco, Inc. (NYSE:WSO) – Equities researchers at William Blair increased their Q1 2025 earnings estimates for Watsco in a research report issued to clients and investors on Tuesday, February 18th. William Blair analyst R. Merkel now forecasts that the construction company will post earnings of $2.35 per share for the quarter, up from their prior forecast of $2.22. The consensus estimate for Watsco’s current full-year earnings is $14.62 per share. William Blair also issued estimates for Watsco’s Q3 2025 earnings at $5.01 EPS and FY2025 earnings at $14.90 EPS.

Other analysts have also issued reports about the stock. Northcoast Research started coverage on shares of Watsco in a research report on Friday, November 22nd. They set a “neutral” rating for the company. Raymond James assumed coverage on shares of Watsco in a research report on Friday, January 17th. They set a “market perform” rating for the company. Finally, Robert W. Baird lifted their price target on shares of Watsco from $540.00 to $560.00 and gave the company an “outperform” rating in a report on Wednesday. Three research analysts have rated the stock with a hold rating and two have assigned a buy rating to the stock. According to data from MarketBeat, Watsco has a consensus rating of “Hold” and an average target price of $495.00.

Watsco Trading Down 3.3 %

Shares of NYSE WSO opened at $498.12 on Thursday. The firm has a 50 day moving average of $484.75 and a 200 day moving average of $492.16. The firm has a market capitalization of $20.11 billion, a price-to-earnings ratio of 37.59 and a beta of 0.95. Watsco has a 12-month low of $380.58 and a 12-month high of $571.41.

Watsco (NYSE:WSO) last announced its quarterly earnings results on Tuesday, February 18th. The construction company reported $2.37 EPS for the quarter, topping analysts’ consensus estimates of $2.13 by $0.24. Watsco had a net margin of 7.04% and a return on equity of 17.59%. The firm had revenue of $1.75 billion during 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. Stockholders of record on Friday, January 17th were issued a $2.70 dividend. This represents a $10.80 annualized dividend and a dividend yield of 2.17%. The ex-dividend date of this dividend was Friday, January 17th. Watsco’s dividend payout ratio (DPR) is presently 81.51%.

Insider Transactions at Watsco

In other news, EVP Barry S. Logan sold 10,998 shares of the business’s stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $508.21, for a total value of $5,589,293.58. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Insiders own 12.86% of the company’s stock.

Institutional Investors Weigh In On Watsco

A number of hedge funds have recently bought and sold shares of WSO. Rialto Wealth Management LLC purchased a new stake in Watsco during the fourth quarter valued at $31,000. Wingate Wealth Advisors Inc. purchased a new stake in Watsco during the fourth quarter valued at $36,000. Ashton Thomas Securities LLC bought a new position in Watsco during the third quarter valued at $43,000. Quarry LP increased its position in Watsco by 57.9% during the third quarter. Quarry LP now owns 90 shares of the construction company’s stock valued at $44,000 after acquiring an additional 33 shares during the last quarter. Finally, Brooklyn Investment Group bought a new position in Watsco during the third quarter valued at $48,000. Hedge funds and other institutional investors 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.