Zacks Research Comments on Watsco’s Q4 Earnings (NYSE:WSO)

Watsco, Inc. (NYSE:WSO) – Equities research analysts at Zacks Research increased their Q4 2025 earnings per share estimates for shares of Watsco in a report released on Wednesday, May 14th. Zacks Research analyst R. Department now anticipates that the construction company will earn $2.53 per share for the quarter, up from their prior estimate of $2.51. The consensus estimate for Watsco’s current full-year earnings is $14.62 per share. Zacks Research also issued estimates for Watsco’s Q2 2026 earnings at $5.27 EPS and FY2026 earnings at $15.65 EPS.

Watsco (NYSE:WSO) last posted its quarterly earnings results on Wednesday, April 23rd. The construction company reported $1.93 earnings per share for the quarter, missing analysts’ consensus estimates of $2.29 by ($0.36). Watsco had a return on equity of 17.59% and a net margin of 7.04%. The firm had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.66 billion. During the same period last year, the company posted $2.17 earnings per share. The firm’s quarterly revenue was down 2.2% compared to the same quarter last year.

Several other brokerages also recently commented on WSO. Loop Capital increased their price objective on Watsco from $450.00 to $460.00 and gave the stock a “hold” rating in a research note on Thursday, February 27th. StockNews.com raised Watsco from a “sell” rating to a “hold” rating in a research report on Friday, May 9th. Robert W. Baird decreased their price target on Watsco from $560.00 to $540.00 and set an “outperform” rating for the company in a research report on Thursday, April 24th. Mizuho set a $490.00 price target on Watsco in a research report on Thursday, April 24th. Finally, Morgan Stanley assumed coverage on Watsco in a research report on Monday, April 14th. They set an “equal weight” rating and a $515.00 price target for the company. Seven investment analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. Based on data from MarketBeat.com, Watsco has an average rating of “Hold” and a consensus price target of $480.83.

Watsco Stock Performance

WSO stock opened at $492.29 on Monday. The stock’s 50 day simple moving average is $489.80 and its 200 day simple moving average is $497.48. Watsco has a fifty-two week low of $439.08 and a fifty-two week high of $571.42. The company has a market cap of $19.89 billion, a P/E ratio of 37.15 and a beta of 1.11.

Hedge Funds Weigh In On Watsco

Hedge funds have recently made changes to their positions in the stock. Opal Wealth Advisors LLC purchased a new position in shares of Watsco in the first quarter valued at $25,000. Manitou Investment Management Ltd. purchased a new position in shares of Watsco in the first quarter valued at $25,000. WPG Advisers LLC purchased a new position in shares of Watsco in the first quarter valued at $25,000. TCTC Holdings LLC grew its position in shares of Watsco by 115.4% in the first quarter. TCTC Holdings LLC now owns 56 shares of the construction company’s stock valued at $28,000 after purchasing an additional 30 shares in the last quarter. Finally, City Holding Co. purchased a new position in shares of Watsco in the first quarter valued at $29,000. 89.71% of the stock is currently owned by hedge funds and other institutional investors.

Watsco Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 30th. Stockholders of record on Tuesday, April 15th were given a $3.00 dividend. The ex-dividend date was Tuesday, April 15th. This is a boost from Watsco’s previous quarterly dividend of $2.70. This represents a $12.00 annualized dividend and a dividend yield of 2.44%. Watsco’s payout ratio is 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.