William Blair Issues Optimistic Forecast for Watsco Earnings

Watsco, Inc. (NYSE:WSO) – William Blair boosted their FY2024 earnings per share (EPS) estimates for Watsco in a note issued to investors on Wednesday, January 15th. William Blair analyst R. Merkel now forecasts that the construction company will post earnings of $13.13 per share for the year, up from their prior forecast of $12.75. The consensus estimate for Watsco’s current full-year earnings is $13.04 per share. William Blair also issued estimates for Watsco’s Q4 2024 earnings at $2.23 EPS and FY2025 earnings at $14.85 EPS.

Watsco (NYSE:WSO) last announced its quarterly earnings results on Wednesday, October 23rd. The construction company reported $4.22 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.73 by ($0.51). Watsco had a return on equity of 17.77% and a net margin of 6.99%. The company had revenue of $2.16 billion for the quarter, compared to analyst estimates of $2.24 billion. During the same quarter last year, the company posted $4.35 earnings per share. The firm’s quarterly revenue was up 1.6% on a year-over-year basis.

A number of other equities research analysts have also weighed in on WSO. Robert W. Baird reduced their target price on shares of Watsco from $550.00 to $540.00 and set an “outperform” rating on the stock in a report on Thursday, October 24th. Raymond James initiated coverage on shares of Watsco in a research report on Friday, January 17th. They set a “market perform” rating on the stock. Finally, Northcoast Research started coverage on Watsco in a research report on Friday, November 22nd. They issued a “neutral” rating for the company. Three research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $488.33.

Watsco Stock Up 1.8 %

Shares of WSO stock opened at $505.29 on Monday. Watsco has a twelve month low of $373.33 and a twelve month high of $571.41. The stock’s fifty day simple moving average is $507.11 and its 200 day simple moving average is $492.78. The firm has a market capitalization of $20.40 billion, a P/E ratio of 39.05 and a beta of 0.95.

Watsco Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, January 31st. Stockholders of record on Friday, January 17th will be issued a dividend of $2.70 per share. This represents a $10.80 dividend on an annualized basis and a dividend yield of 2.14%. The ex-dividend date of this dividend is Friday, January 17th. Watsco’s dividend payout ratio is currently 83.46%.

Insider Transactions at Watsco

In related news, EVP Barry S. Logan sold 10,998 shares of the stock in a transaction that occurred on Wednesday, December 18th. The stock was sold at an average price of $508.21, for a total transaction of $5,589,293.58. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 12.86% of the company’s stock.

Hedge Funds Weigh In On Watsco

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. J. W. Coons Advisors LLC raised its position in Watsco by 0.7% in the third quarter. J. W. Coons Advisors LLC now owns 2,999 shares of the construction company’s stock worth $1,475,000 after acquiring an additional 20 shares during the period. My Legacy Advisors LLC raised its holdings in shares of Watsco by 3.2% in the 4th quarter. My Legacy Advisors LLC now owns 687 shares of the construction company’s stock worth $329,000 after purchasing an additional 21 shares during the period. Massmutual Trust Co. FSB ADV lifted its stake in Watsco by 30.6% in the third quarter. Massmutual Trust Co. FSB ADV now owns 94 shares of the construction company’s stock valued at $46,000 after purchasing an additional 22 shares during the last quarter. CWM LLC grew its holdings in Watsco by 2.6% during the third quarter. CWM LLC now owns 952 shares of the construction company’s stock valued at $468,000 after purchasing an additional 24 shares during the period. Finally, MCF Advisors LLC grew its holdings in Watsco by 27.8% during the third quarter. MCF Advisors LLC now owns 115 shares of the construction company’s stock valued at $57,000 after purchasing an additional 25 shares during the period. 89.71% of the stock is owned by hedge funds and other institutional investors.

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.