Analysts Issue Forecasts for Watsco’s Q1 Earnings (NYSE:WSO)

Watsco, Inc. (NYSE:WSO) – Research analysts at Zacks Research lowered their Q1 2026 earnings per share estimates for shares of Watsco in a research report issued to clients and investors on Tuesday, March 10th. Zacks Research analyst Team now expects that the construction company will post earnings per share of $1.74 for the quarter, down from their prior estimate of $2.00. Zacks Research has a “Hold” rating on the stock. 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 $4.27 EPS, Q3 2026 earnings at $4.22 EPS, Q4 2026 earnings at $2.14 EPS, Q1 2027 earnings at $1.89 EPS, Q2 2027 earnings at $4.74 EPS, Q3 2027 earnings at $4.77 EPS, Q4 2027 earnings at $2.42 EPS, FY2027 earnings at $13.83 EPS and FY2028 earnings at $15.63 EPS.

WSO has been the topic of several other research reports. JPMorgan Chase & Co. lifted their target price on shares of Watsco from $370.00 to $400.00 and gave the company a “neutral” rating in a report on Thursday, February 19th. Morgan Stanley cut their price target on shares of Watsco from $460.00 to $370.00 and set an “equal weight” rating for the company in a report on Wednesday, January 14th. KeyCorp restated a “sector weight” rating on shares of Watsco in a research report on Friday, December 12th. Mizuho set a $425.00 price objective on Watsco in a report on Wednesday, February 18th. Finally, UBS Group began coverage on Watsco in a research note on Monday, January 5th. They set a “neutral” rating and a $370.00 target price for the company. One analyst has rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $409.00.

Watsco Stock Performance

Shares of WSO opened at $374.03 on Wednesday. The stock has a market capitalization of $15.17 billion, a P/E ratio of 30.89 and a beta of 1.03. Watsco has a 1 year low of $323.05 and a 1 year high of $521.70. The company’s fifty day moving average is $392.76 and its two-hundred day moving average is $377.01.

Watsco (NYSE:WSO) last released its quarterly earnings results on Tuesday, February 17th. The construction company reported $1.68 EPS for the quarter, missing the consensus estimate of $1.94 by ($0.26). Watsco had a return on equity of 15.49% and a net margin of 6.87%.The company had revenue of $1.58 billion for the quarter, compared to analysts’ expectations of $1.62 billion. During the same quarter last year, the company earned $2.37 EPS. Watsco’s revenue for the quarter was down 9.9% compared to the same quarter last year.

Institutional Investors Weigh In On Watsco

Institutional investors have recently modified their holdings of the company. Truist Financial Corp boosted its position in shares of Watsco by 89.2% in the third quarter. Truist Financial Corp now owns 37,808 shares of the construction company’s stock worth $15,286,000 after buying an additional 17,820 shares during the period. Donaldson Capital Management LLC grew its stake in shares of Watsco by 47.7% in the third quarter. Donaldson Capital Management LLC now owns 124,789 shares of the construction company’s stock valued at $50,452,000 after buying an additional 40,326 shares in the last quarter. Federated Hermes Inc. raised its holdings in shares of Watsco by 577.9% during the 3rd quarter. Federated Hermes Inc. now owns 19,957 shares of the construction company’s stock valued at $8,069,000 after buying an additional 17,013 shares during the period. Allianz Asset Management GmbH raised its holdings in shares of Watsco by 237.5% during the 3rd quarter. Allianz Asset Management GmbH now owns 5,629 shares of the construction company’s stock valued at $2,276,000 after buying an additional 3,961 shares during the period. Finally, Atlantic Union Bankshares Corp acquired a new position in Watsco during the 3rd quarter worth approximately $1,392,000. Hedge funds and other institutional investors own 89.71% of the company’s stock.

Watsco Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, January 30th. Shareholders of record on Friday, January 16th were issued a $3.00 dividend. The ex-dividend date of this dividend was Friday, January 16th. This represents a $12.00 dividend on an annualized basis and a yield of 3.2%. Watsco’s dividend payout ratio (DPR) is 99.09%.

Watsco News Roundup

Here are the key news stories impacting Watsco this week:

• Positive Sentiment: Short interest fell meaningfully in February (shares short down ~12.4% to ~3.08M, ~8.7% of float, short-interest ratio ~7.8 days), reducing a portion of the downside squeeze risk and signaling some bearish positions being covered.
• Positive Sentiment: Zacks raised a few quarterly estimates — notably Q3 2027 to $4.77 (from $4.64) and Q4 2027 to $2.42 (from $2.27) — suggesting pockets of stronger expected demand in later 2027 that could support forward valuation if trends persist.
• Neutral Sentiment: Zacks published a FY2028 estimate of $15.63/share and maintained a “Hold” rating; the shop’s revisions are mixed overall, so this is more informational than a directional endorsement by itself.
• Negative Sentiment: Multiple near-term cuts from Zacks: Q1 2026 trimmed to $1.74 (from $2.00), Q2 2026 to $4.27 (from $4.53), Q3 2026 to $4.22 (from $4.27), Q1 2027 to $1.89 (from $2.07) and Q2 2027 to $4.74 (from $4.97); FY2027 was nudged down to $13.83 (from $13.95). These downgrades to near-term earnings expectations are likely the primary reason for intraday weakness.
• Negative Sentiment: Negative press/analysis may amplify selling pressure — e.g., a recent MSN piece arguing to avoid WSO and recommending an alternative. 3 reasons to avoid WSO and 1 stock to buy instead

Watsco Company Profile

Watsco, Inc is the largest distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment, parts and supplies in the United States. Headquartered in Miami, Florida, the company operates a network of more than 600 branches across the continental U.S., Canada and Puerto Rico. Watsco serves residential and commercial contractors by providing essential components for climate control systems, including air conditioners, furnaces, heat pumps, coils, refrigerants, controls and electrical and piping supplies.

Founded in 1947, Watsco has grown from a single regional distributor into an industry leader through a combination of organic expansion, acquisitions and strategic partnerships with original equipment manufacturers such as Carrier, Trane, Goodman and Lennox.