Jefferies Financial Group Brokers Increase Earnings Estimates for Watsco, Inc. (NYSE:WSO)

Watsco, Inc. (NYSE:WSOGet Rating) – Research analysts at Jefferies Financial Group upped their Q2 2022 EPS estimates for shares of Watsco in a report issued on Wednesday, July 20th. Jefferies Financial Group analyst S. Volkmann now forecasts that the construction company will post earnings of $5.35 per share for the quarter, up from their previous estimate of $5.30. The consensus estimate for Watsco’s current full-year earnings is $14.63 per share. Jefferies Financial Group also issued estimates for Watsco’s Q3 2022 earnings at $4.45 EPS, Q4 2022 earnings at $2.29 EPS and FY2022 earnings at $15.00 EPS.

Watsco (NYSE:WSOGet Rating) last issued its quarterly earnings results on Thursday, April 21st. The construction company reported $2.90 EPS for the quarter, topping the consensus estimate of $1.82 by $1.08. The company had revenue of $1.52 billion during the quarter, compared to analyst estimates of $1.39 billion. Watsco had a net margin of 7.16% and a return on equity of 23.76%. The firm’s revenue was up 34.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.39 EPS.

Other equities research analysts have also issued research reports about the stock. Morgan Stanley boosted their price target on shares of Watsco from $207.00 to $208.00 and gave the stock an “underweight” rating in a report on Friday, July 15th. lowered shares of Watsco from a “buy” rating to a “hold” rating in a report on Saturday, April 30th. KeyCorp dropped their target price on shares of Watsco from $320.00 to $300.00 and set an “overweight” rating for the company in a report on Monday, July 18th. Finally, Robert W. Baird raised shares of Watsco from a “neutral” rating to an “outperform” rating and dropped their target price for the stock from $350.00 to $313.00 in a report on Thursday, July 14th. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and two have given a buy rating to the company. According to, the stock has a consensus rating of “Hold” and an average target price of $280.25.

Watsco Price Performance

Shares of NYSE WSO opened at $254.25 on Friday. The firm has a market cap of $9.91 billion, a PE ratio of 20.76 and a beta of 0.89. The firm has a fifty day moving average of $247.91 and a 200 day moving average of $270.74. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.11 and a current ratio of 2.77. Watsco has a one year low of $220.68 and a one year high of $318.98.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Heritage Financial Services LLC acquired a new position in Watsco in the second quarter valued at about $25,000. Sargent Bickham Lagudis LLC lifted its position in shares of Watsco by 828.6% during the second quarter. Sargent Bickham Lagudis LLC now owns 130 shares of the construction company’s stock worth $31,000 after purchasing an additional 116 shares in the last quarter. GoalVest Advisory LLC acquired a new stake in shares of Watsco during the first quarter worth about $32,000. O Dell Group LLC acquired a new stake in shares of Watsco during the first quarter worth about $32,000. Finally, Kistler Tiffany Companies LLC lifted its position in shares of Watsco by 53.3% during the fourth quarter. Kistler Tiffany Companies LLC now owns 115 shares of the construction company’s stock worth $36,000 after purchasing an additional 40 shares in the last quarter. Institutional investors and hedge funds own 78.13% of the company’s stock.

Insider Activity at Watsco

In related news, Director Cesar L. Alvarez sold 4,000 shares of the company’s stock in a transaction dated Friday, May 27th. The shares were sold at an average price of $253.55, for a total value of $1,014,200.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 13.31% of the stock is currently owned by insiders.

Watsco Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 29th. Investors of record on Friday, July 15th will be issued a $2.20 dividend. This represents a $8.80 dividend on an annualized basis and a dividend yield of 3.46%. The ex-dividend date of this dividend is Thursday, July 14th. Watsco’s dividend payout ratio is currently 71.84%.

Watsco Company Profile

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Watsco, Inc, together with its subsidiaries, distributes air conditioning, heating, refrigeration equipment, and related parts and supplies. The company distributes equipment comprising residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment.

Further Reading

Earnings History and Estimates for Watsco (NYSE:WSO)

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