Brokers Issue Forecasts for Watsco’s Q3 Earnings (NYSE:WSO)

Watsco, Inc. (NYSE:WSO) – Stock analysts at William Blair raised their Q3 2025 EPS estimates for Watsco in a research report issued on Wednesday, April 23rd. William Blair analyst R. Merkel now forecasts that the construction company will post earnings per share of $5.07 for the quarter, up from their previous estimate of $5.01. 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 $2.52 EPS, FY2025 earnings at $14.62 EPS, Q2 2026 earnings at $5.05 EPS, Q3 2026 earnings at $5.27 EPS, FY2026 earnings at $15.62 EPS and FY2027 earnings at $17.30 EPS.

A number of other research firms also recently weighed in on WSO. StockNews.com downgraded shares of Watsco from a “hold” rating to a “sell” rating in a research report on Friday. Robert W. Baird decreased their price objective on shares of Watsco from $560.00 to $540.00 and set an “outperform” rating for the company in a research report on Thursday. Mizuho set a $490.00 target price on shares of Watsco in a research note on Thursday. Loop Capital upped their price target on shares of Watsco from $450.00 to $460.00 and gave the company a “hold” rating in a research report on Thursday, February 27th. Finally, Morgan Stanley began coverage on Watsco in a research report on Monday, April 14th. They issued an “equal weight” rating and a $515.00 price objective for the company. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and one has assigned a buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $480.83.

Watsco Stock Performance

Shares of NYSE WSO opened at $455.46 on Friday. The stock has a market cap of $18.40 billion, a P/E ratio of 34.37 and a beta of 1.00. The firm has a 50 day moving average price of $498.87 and a two-hundred day moving average price of $498.73. Watsco has a 52-week low of $439.08 and a 52-week high of $571.42.

Watsco (NYSE:WSO) last announced its earnings results on Wednesday, April 23rd. The construction company reported $1.93 EPS for the quarter, missing the consensus estimate of $2.29 by ($0.36). The company had revenue of $1.53 billion for the quarter, compared to the consensus estimate of $1.66 billion. Watsco had a return on equity of 17.59% and a net margin of 7.04%. During the same period in the previous year, the firm posted $2.17 EPS.

Watsco Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 30th. Shareholders of record on Tuesday, April 15th will be issued a $3.00 dividend. The ex-dividend date is Tuesday, April 15th. This represents a $12.00 annualized dividend and a dividend yield of 2.63%. This is a boost from Watsco’s previous quarterly dividend of $2.70. Watsco’s dividend payout ratio (DPR) is presently 90.57%.

Institutional Trading of Watsco

Several institutional investors and hedge funds have recently made changes to their positions in WSO. Opal Wealth Advisors LLC bought a new stake in Watsco in the 1st quarter worth approximately $25,000. Manitou Investment Management Ltd. bought a new stake in shares of Watsco in the 1st quarter worth approximately $25,000. City Holding Co. purchased a new stake in shares of Watsco in the 1st quarter valued at $29,000. Rialto Wealth Management LLC bought a new position in shares of Watsco during the 4th quarter valued at $31,000. Finally, ST Germain D J Co. Inc. grew its holdings in shares of Watsco by 260.0% during the 1st quarter. ST Germain D J Co. Inc. now owns 72 shares of the construction company’s stock valued at $37,000 after purchasing an additional 52 shares during the last quarter. Hedge funds and other institutional investors own 89.71% of the company’s stock.

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.