Zacks Research Issues Positive Forecast for Watsco Earnings

Watsco, Inc. (NYSE:WSO) – Research analysts at Zacks Research upped their Q2 2025 earnings estimates for Watsco in a note issued to investors on Wednesday, May 14th. Zacks Research analyst R. Department now forecasts that the construction company will post earnings of $4.90 per share for the quarter, up from their prior estimate of $4.78. The consensus estimate for Watsco’s current full-year earnings is $14.62 per share. Zacks Research also issued estimates for Watsco’s Q3 2025 earnings at $4.81 EPS, FY2025 earnings at $14.18 EPS, Q1 2026 earnings at $2.28 EPS, Q3 2026 earnings at $5.19 EPS, Q4 2026 earnings at $2.90 EPS, Q1 2027 earnings at $2.22 EPS and FY2027 earnings at $16.70 EPS.

Watsco (NYSE:WSO) last issued 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). Watsco had a net margin of 7.04% and a return on equity of 17.59%. The firm had revenue of $1.53 billion during the quarter, compared to the consensus estimate of $1.66 billion. During the same period in the previous year, the company posted $2.17 EPS. The firm’s revenue for the quarter was down 2.2% on a year-over-year basis.

WSO has been the topic of several other reports. Mizuho set a $490.00 price target on shares of Watsco in a research report on Thursday, April 24th. UBS Group dropped their price target on shares of Watsco from $475.00 to $455.00 and set a “neutral” rating on the stock in a research report on Thursday, April 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. Morgan Stanley initiated coverage on shares of Watsco in a research report on Monday, April 14th. They issued an “equal weight” rating and a $515.00 price objective on the stock. Finally, Robert W. Baird dropped their price objective on shares of Watsco from $560.00 to $540.00 and set an “outperform” rating on the stock in a research report on Thursday, April 24th. Seven analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and an average target price of $480.83.

Watsco Trading Up 2.8%

Shares of WSO opened at $492.29 on Friday. The firm has a fifty day simple moving average of $489.80 and a 200 day simple moving average of $497.15. Watsco has a 12 month low of $439.08 and a 12 month high of $571.42. The stock has a market capitalization of $19.89 billion, a price-to-earnings ratio of 37.15 and a beta of 1.11.

Watsco Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, April 30th. Stockholders of record on Tuesday, April 15th were paid a $3.00 dividend. This is a positive change from Watsco’s previous quarterly dividend of $2.70. The ex-dividend date was Tuesday, April 15th. This represents a $12.00 annualized dividend and a dividend yield of 2.44%. Watsco’s dividend payout ratio is presently 92.24%.

Institutional Trading of Watsco

Institutional investors have recently made changes to their positions in the company. GAMMA Investing LLC grew its position in Watsco by 89,376.0% during the first quarter. GAMMA Investing LLC now owns 477,802 shares of the construction company’s stock valued at $242,867,000 after buying an additional 477,268 shares during the period. Norges Bank bought a new position in Watsco during the fourth quarter valued at about $118,312,000. Lord Abbett & CO. LLC bought a new position in Watsco during the fourth quarter valued at about $104,533,000. Goldman Sachs Group Inc. lifted its holdings in Watsco by 62.8% during the first quarter. Goldman Sachs Group Inc. now owns 468,875 shares of the construction company’s stock valued at $238,329,000 after purchasing an additional 180,951 shares during the last quarter. Finally, Proficio Capital Partners LLC purchased a new stake in Watsco during the fourth quarter valued at about $63,603,000. 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.