Brokers Set Expectations for Watsco’s Q4 Earnings (NYSE:WSO)

Watsco, Inc. (NYSE:WSO) – Stock analysts at Zacks Research cut their Q4 2025 earnings per share (EPS) estimates for Watsco in a report released on Wednesday, January 14th. Zacks Research analyst Team now expects that the construction company will post earnings of $1.95 per share for the quarter, down from their prior forecast of $1.96. Zacks Research currently has a “Strong Sell” 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 Q4 2026 earnings at $2.13 EPS and Q4 2027 earnings at $2.27 EPS.

Watsco (NYSE:WSO) last posted its quarterly earnings data on Friday, November 7th. The construction company reported $3.98 EPS for the quarter. Watsco had a return on equity of 16.48% and a net margin of 7.04%.The firm had revenue of $2.07 billion during the quarter.

Several other research analysts have also weighed in on the company. Wolfe Research set a $349.00 target price on Watsco in a research report on Tuesday, December 9th. Mizuho lowered their price target on Watsco from $400.00 to $370.00 and set a “neutral” rating for the company in a research report on Monday, January 5th. William Blair restated a “market perform” rating on shares of Watsco in a report on Wednesday, October 15th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Watsco in a research note on Thursday, October 30th. Finally, JPMorgan Chase & Co. boosted their target price on Watsco from $360.00 to $370.00 and gave the stock a “neutral” rating in a report on Friday, January 16th. One analyst has rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $404.14.

Watsco Price Performance

Shares of WSO stock opened at $377.74 on Monday. Watsco has a 1-year low of $323.05 and a 1-year high of $535.40. The firm’s 50-day simple moving average is $350.54 and its 200-day simple moving average is $387.87. The firm has a market cap of $15.32 billion, a P/E ratio of 29.51 and a beta of 1.03.

Institutional Trading of Watsco

Hedge funds have recently made changes to their positions in the company. Empowered Funds LLC grew its holdings in Watsco by 4.1% during the 1st quarter. Empowered Funds LLC now owns 5,927 shares of the construction company’s stock valued at $3,013,000 after purchasing an additional 232 shares in the last quarter. Mn Services Vermogensbeheer B.V. boosted its position in Watsco by 5.7% in the 2nd quarter. Mn Services Vermogensbeheer B.V. now owns 13,000 shares of the construction company’s stock valued at $5,741,000 after buying an additional 700 shares during the last quarter. Wealth Enhancement Advisory Services LLC boosted its position in Watsco by 1.4% in the 2nd quarter. Wealth Enhancement Advisory Services LLC now owns 15,993 shares of the construction company’s stock valued at $7,314,000 after buying an additional 218 shares during the last quarter. IFM Investors Pty Ltd grew its stake in shares of Watsco by 4.7% during the second quarter. IFM Investors Pty Ltd now owns 6,999 shares of the construction company’s stock valued at $3,091,000 after acquiring an additional 311 shares in the last quarter. Finally, Farther Finance Advisors LLC increased its position in shares of Watsco by 16.2% during the second quarter. Farther Finance Advisors LLC now owns 1,865 shares of the construction company’s stock worth $824,000 after acquiring an additional 260 shares during the last quarter. Hedge funds and other institutional investors own 89.71% of the company’s stock.

Watsco Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, January 30th. Shareholders of record on Friday, January 16th will be issued a $3.00 dividend. This represents a $12.00 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date is Friday, January 16th. Watsco’s dividend payout ratio is currently 93.75%.

About Watsco

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.