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

Watsco, Inc. (NYSE:WSO) – Equities researchers at Zacks Research upped their Q4 2025 earnings per share (EPS) estimates for shares of Watsco in a research report issued to clients and investors on Wednesday, May 14th. Zacks Research analyst R. Department now forecasts that the construction company will post earnings of $2.53 per share for the quarter, up from their previous forecast 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 EPS 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 business had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.66 billion. During the same period last year, the firm posted $2.17 EPS. Watsco’s quarterly revenue was down 2.2% on a year-over-year basis.

A number of other equities analysts have also recently commented on the company. StockNews.com raised Watsco from a “sell” rating to a “hold” rating in a report on Friday, May 9th. UBS Group lowered their target price on Watsco from $475.00 to $455.00 and set a “neutral” rating for the company in a report on Thursday, April 24th. Robert W. Baird lowered their target price on Watsco from $560.00 to $540.00 and set an “outperform” rating for the company in a report on Thursday, April 24th. Mizuho set a $490.00 target price on Watsco in a report on Thursday, April 24th. Finally, Morgan Stanley assumed coverage on Watsco in a report on Monday, April 14th. They issued an “equal weight” rating and a $515.00 target price for the company. Seven research analysts have rated the stock with a hold rating and one has issued a buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $480.83.

Watsco Stock Performance

Watsco stock opened at $492.29 on Monday. Watsco has a 52 week low of $439.08 and a 52 week high of $571.42. The stock has a market capitalization of $19.89 billion, a P/E ratio of 37.15 and a beta of 1.11. The stock has a fifty day moving average of $489.80 and a 200-day moving average of $497.48.

Watsco Increases Dividend

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

Institutional Investors Weigh In On Watsco

A number of institutional investors have recently made changes to their positions in the stock. GAMMA Investing LLC boosted its position in shares of Watsco by 89,376.0% during the 1st quarter. GAMMA Investing LLC now owns 477,802 shares of the construction company’s stock valued at $242,867,000 after purchasing an additional 477,268 shares in the last quarter. Norges Bank bought a new stake in shares of Watsco during the 4th quarter valued at about $118,312,000. Lord Abbett & CO. LLC bought a new stake in shares of Watsco during the 4th quarter valued at about $104,533,000. Goldman Sachs Group Inc. boosted its position in shares of Watsco by 62.8% during the 1st 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 in the last quarter. Finally, Proficio Capital Partners LLC bought a new stake in shares of Watsco during the 4th quarter valued at about $63,603,000. 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.