Research Analysts Issue Forecasts for Watsco Q2 Earnings

Watsco, Inc. (NYSE:WSO) – Equities research analysts at William Blair cut their Q2 2025 EPS estimates for shares of Watsco in a research report issued to clients and investors on Monday, July 14th. William Blair analyst R. Merkel now expects that the construction company will post earnings of $4.71 per share for the quarter, down from their previous estimate of $5.10. 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 $2.55 EPS, FY2025 earnings at $14.23 EPS, Q2 2026 earnings at $4.97 EPS, FY2026 earnings at $15.37 EPS and FY2027 earnings at $17.15 EPS.

A number of other research analysts have also recently weighed in on the stock. Mizuho set a $490.00 price target on shares of Watsco in a research report on Thursday, April 24th. UBS Group decreased their price target on shares of Watsco from $455.00 to $450.00 and set a “neutral” rating for the company in a research report on Wednesday, June 25th. JPMorgan Chase & Co. raised their price objective on Watsco from $445.00 to $460.00 and gave the company a “neutral” rating in a research report on Tuesday, May 27th. Wall Street Zen upgraded Watsco from a “sell” rating to a “hold” rating in a research note on Friday, May 9th. Finally, Robert W. Baird dropped their target price on Watsco from $560.00 to $540.00 and set an “outperform” rating on the stock in a report on Thursday, April 24th. Seven investment analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. According to MarketBeat.com, Watsco currently has an average rating of “Hold” and a consensus target price of $484.17.

Watsco Price Performance

NYSE WSO opened at $474.76 on Tuesday. Watsco has a 1-year low of $418.31 and a 1-year high of $571.42. The firm has a market capitalization of $19.23 billion, a P/E ratio of 36.49 and a beta of 1.04. The business’s 50-day simple moving average is $453.19 and its 200-day simple moving average is $476.82.

Watsco (NYSE:WSO) last posted its quarterly earnings results on Wednesday, April 23rd. The construction company reported $1.93 earnings per share for the quarter, missing analysts’ consensus estimates of $2.29 by ($0.36). Watsco had a return on equity of 17.13% and a net margin of 6.98%. The company had revenue of $1.53 billion for the quarter, compared to analysts’ expectations of $1.66 billion. During the same period in the prior year, the business earned $2.17 EPS. The business’s revenue for the quarter was down 2.2% on a year-over-year basis.

Watsco Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 31st. Stockholders of record on Wednesday, July 16th will be given a dividend of $3.00 per share. This represents a $12.00 dividend on an annualized basis and a dividend yield of 2.53%. The ex-dividend date of this dividend is Wednesday, July 16th. Watsco’s payout ratio is currently 92.24%.

Institutional Trading of Watsco

Several institutional investors have recently added to or reduced their stakes in the stock. Independent Advisor Alliance acquired a new position in Watsco in the fourth quarter worth about $220,000. Sequoia Financial Advisors LLC lifted its holdings in Watsco by 36.0% during the 4th quarter. Sequoia Financial Advisors LLC now owns 752 shares of the construction company’s stock worth $356,000 after buying an additional 199 shares during the last quarter. Avantax Advisory Services Inc. grew its position in shares of Watsco by 0.9% in the 4th quarter. Avantax Advisory Services Inc. now owns 4,582 shares of the construction company’s stock worth $2,171,000 after acquiring an additional 39 shares in the last quarter. Commonwealth Equity Services LLC increased its holdings in shares of Watsco by 0.8% in the 4th quarter. Commonwealth Equity Services LLC now owns 13,669 shares of the construction company’s stock valued at $6,478,000 after acquiring an additional 108 shares during the last quarter. Finally, SlateStone Wealth LLC increased its holdings in shares of Watsco by 1.8% in the 4th quarter. SlateStone Wealth LLC now owns 2,089 shares of the construction company’s stock valued at $990,000 after acquiring an additional 37 shares during the last quarter. 89.71% of the stock is owned by institutional investors and hedge funds.

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.