William Blair Comments on Watsco’s Q3 Earnings (NYSE:WSO)

Watsco, Inc. (NYSE:WSO) – Investment analysts at William Blair boosted their Q3 2025 EPS estimates for Watsco in a report issued on Wednesday, October 29th. William Blair analyst R. Merkel now anticipates that the construction company will earn $3.98 per share for the quarter, up from their previous estimate of $3.55. William Blair currently 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 $1.79 EPS, FY2025 earnings at $12.22 EPS, Q1 2026 earnings at $2.11 EPS, Q2 2026 earnings at $4.33 EPS, Q3 2026 earnings at $4.26 EPS, FY2026 earnings at $12.94 EPS and FY2027 earnings at $14.40 EPS.

Watsco (NYSE:WSO) last released its quarterly earnings results on Wednesday, October 29th. The construction company reported $3.98 earnings per share for the quarter, missing the consensus estimate of $4.60 by ($0.62). The firm had revenue of $2.07 billion during the quarter, compared to the consensus estimate of $2.18 billion. Watsco had a return on equity of 16.48% and a net margin of 7.04%.The company’s revenue for the quarter was down 4.3% compared to the same quarter last year. During the same period in the previous year, the company posted $4.22 EPS.

Several other research analysts have also recently weighed in on WSO. UBS Group decreased their price target on shares of Watsco from $450.00 to $425.00 and set a “neutral” rating on the stock in a report on Tuesday, September 23rd. JPMorgan Chase & Co. cut their target price on shares of Watsco from $400.00 to $360.00 and set a “neutral” rating for the company in a research report on Thursday. Weiss Ratings reiterated a “hold (c)” rating on shares of Watsco in a research report on Thursday. Zacks Research lowered shares of Watsco from a “hold” rating to a “strong sell” rating in a research report on Wednesday. Finally, Morgan Stanley cut their target price on shares of Watsco from $505.00 to $460.00 and set an “equal weight” rating for the company in a research report on Wednesday, October 8th. One research analyst has rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Watsco has an average rating of “Hold” and a consensus target price of $440.83.

Watsco Stock Performance

Watsco stock opened at $367.16 on Friday. The stock has a market cap of $14.89 billion, a P/E ratio of 28.68 and a beta of 0.94. Watsco has a fifty-two week low of $350.00 and a fifty-two week high of $571.41. The firm’s fifty day moving average price is $387.80 and its 200-day moving average price is $431.12.

Institutional Trading of Watsco

A number of institutional investors have recently modified their holdings of WSO. Norges Bank purchased a new stake in shares of Watsco during the second quarter worth about $84,826,000. Goldman Sachs Group Inc. raised its stake in Watsco by 62.8% in the first quarter. Goldman Sachs Group Inc. now owns 468,875 shares of the construction company’s stock worth $238,329,000 after buying an additional 180,951 shares in the last quarter. Corient Private Wealth LLC raised its stake in Watsco by 106.4% in the second quarter. Corient Private Wealth LLC now owns 296,170 shares of the construction company’s stock worth $130,801,000 after buying an additional 152,662 shares in the last quarter. Jacobs Levy Equity Management Inc. bought a new position in Watsco in the first quarter worth about $54,536,000. Finally, Charles Schwab Investment Management Inc. raised its stake in Watsco by 6.0% in the first quarter. Charles Schwab Investment Management Inc. now owns 1,454,512 shares of the construction company’s stock worth $739,088,000 after buying an additional 82,977 shares in the last quarter. 89.71% of the stock is currently owned by hedge funds and other institutional investors.

Watsco Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, October 31st. Stockholders of record on Thursday, October 16th were issued a dividend of $3.00 per share. This represents a $12.00 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date was Thursday, October 16th. Watsco’s dividend payout ratio is currently 93.75%.

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.