William Blair Brokers Decrease Earnings Estimates for Watsco

Watsco, Inc. (NYSE:WSO) – Analysts at William Blair reduced their Q3 2025 earnings per share (EPS) estimates for Watsco in a report released on Wednesday, October 15th. William Blair analyst R. Merkel now forecasts that the construction company will earn $3.55 per share for the quarter, down from their prior forecast of $4.54. William Blair has a “Market Perform” rating on the stock. 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 $1.75 EPS, FY2025 earnings at $11.75 EPS, Q1 2026 earnings at $2.08 EPS, Q2 2026 earnings at $4.31 EPS, Q3 2026 earnings at $4.05 EPS, Q4 2026 earnings at $2.25 EPS, FY2026 earnings at $12.69 EPS and FY2027 earnings at $14.85 EPS.

Watsco (NYSE:WSO) last posted its quarterly earnings data on Wednesday, July 30th. The construction company reported $4.52 EPS for the quarter, missing analysts’ consensus estimates of $4.84 by ($0.32). Watsco had a net margin of 7.08% and a return on equity of 16.96%. The company had revenue of $2.06 billion for the quarter, compared to analyst estimates of $2.24 billion. During the same period in the previous year, the business earned $4.49 EPS. The firm’s revenue was down 3.6% on a year-over-year basis.

A number of other equities research analysts have also issued reports on the company. Mizuho lowered their target price on Watsco from $525.00 to $400.00 and set a “neutral” rating for the company in a research note on Friday. UBS Group lowered their price objective on Watsco from $450.00 to $425.00 and set a “neutral” rating for the company in a research note on Tuesday, September 23rd. JPMorgan Chase & Co. lowered their price objective on Watsco from $425.00 to $400.00 and set a “neutral” rating for the company in a research note on Wednesday. Morgan Stanley lowered their price objective on Watsco from $505.00 to $460.00 and set an “equal weight” rating for the company in a research note on Wednesday, October 8th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Watsco in a research note on Wednesday, October 8th. One equities research analyst has rated the stock with a Buy rating and nine have given a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $447.50.

Watsco Price Performance

Watsco stock opened at $371.41 on Friday. The stock’s 50-day moving average is $398.64 and its 200-day moving average is $440.31. The company has a market cap of $15.06 billion, a price-to-earnings ratio of 28.48 and a beta of 0.94. Watsco has a 12 month low of $350.00 and a 12 month high of $571.41.

Watsco Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 31st. Shareholders of record on Thursday, October 16th will be paid a dividend of $3.00 per share. The ex-dividend date of this dividend is Thursday, October 16th. This represents a $12.00 annualized dividend and a yield of 3.2%. Watsco’s payout ratio is presently 92.02%.

Institutional Trading of Watsco

Several hedge funds have recently added to or reduced their stakes in the business. WPG Advisers LLC acquired a new position in shares of Watsco during the 1st quarter valued at $25,000. Ameritas Advisory Services LLC acquired a new position in shares of Watsco during the 2nd quarter valued at $26,000. TCTC Holdings LLC increased its position in shares of Watsco by 115.4% during the 1st quarter. TCTC Holdings LLC now owns 56 shares of the construction company’s stock valued at $28,000 after purchasing an additional 30 shares during the period. Rossby Financial LCC acquired a new position in shares of Watsco during the 1st quarter valued at $33,000. Finally, TD Waterhouse Canada Inc. increased its position in shares of Watsco by 242.9% during the 2nd quarter. TD Waterhouse Canada Inc. now owns 72 shares of the construction company’s stock valued at $33,000 after purchasing an additional 51 shares during the period. 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.