Zacks Research Has Positive Forecast for Watsco Q3 Earnings

Watsco, Inc. (NYSE:WSO) – Stock analysts at Zacks Research raised their Q3 2027 earnings per share estimates for Watsco in a research report issued to clients and investors on Thursday, October 22nd. Zacks Research analyst Team now anticipates that the construction company will post earnings per share of $4.59 for the quarter, up from their previous estimate of $4.58. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for Watsco’s current full-year earnings is $12.19 per share. Zacks Research also issued estimates for Watsco’s FY2027 earnings at $13.28 EPS, Q3 2028 earnings at $5.22 EPS and FY2028 earnings at $15.20 EPS.

A number of other analysts also recently issued reports on WSO. Weiss Ratings downgraded shares of Watsco from a “hold (c)” rating to a “hold (c-)” rating in a report on Tuesday, October 6th. Mizuho dropped their price objective on shares of Watsco from $350.00 to $325.00 and set a “neutral” rating for the company in a report on Thursday, October 15th. Robert W. Baird set a $400.00 price objective on Watsco in a research report on Thursday, July 30th. Morgan Stanley reduced their target price on Watsco from $370.00 to $330.00 and set an “equal weight” rating on the stock in a report on Monday, October 12th. Finally, Stephens reaffirmed an “overweight” rating and issued a $485.00 target price on shares of Watsco in a report on Monday, August 17th. Two equities research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $373.62.

Watsco Price Performance

Shares of WSO opened at $305.97 on Monday. The firm has a market cap of $12.62 billion, a P/E ratio of 26.54 and a beta of 1.06. Watsco has a 1 year low of $277.34 and a 1 year high of $459.00. The company has a 50 day simple moving average of $307.02 and a two-hundred day simple moving average of $367.03.

Watsco (NYSE:WSO) last posted its quarterly earnings results on Wednesday, July 29th. The construction company reported $4.00 EPS for the quarter, missing analysts’ consensus estimates of $4.41 by ($0.41). Watsco had a return on equity of 14.40% and a net margin of 6.53%. The business had revenue of $2.10 billion during the quarter, compared to analysts’ expectations of $2.14 billion. During the same period in the prior year, the firm posted $4.52 earnings per share. The firm’s revenue for the quarter was up 2.1% on a year-over-year basis.

Institutional Trading of Watsco

Several hedge funds and other institutional investors have recently bought and sold shares of WSO. Confluence Investment Management LLC purchased a new position in Watsco during the third quarter worth $96,991,000. Bank of America Corp DE purchased a new stake in shares of Watsco in the second quarter valued at $119,291,000. Bank of New York Mellon Corp purchased a new stake in shares of Watsco in the second quarter valued at $97,937,000. Findlay Park Partners LLP bought a new stake in shares of Watsco in the 2nd quarter worth about $78,695,000. Finally, Corient Private Wealth LP bought a new stake in shares of Watsco in the 2nd quarter worth about $60,024,000. 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 will be paid on Friday, October 30th. Stockholders of record on Friday, October 16th will be issued a $3.30 dividend. The ex-dividend date is Friday, October 16th. This represents a $13.20 dividend on an annualized basis and a dividend yield of 4.3%. Watsco’s payout ratio is 114.48%.

Watsco Company Profile

Watsco, Inc (NYSE: WSO) is a distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment and related products. The company supplies residential and light commercial air-conditioning and heating systems, refrigeration equipment, replacement parts, and other supplies used by contractors and service professionals.

Watsco distributes products from leading HVAC/R manufacturers, including equipment and components such as air conditioners, heat pumps, furnaces, air handlers, thermostats, controls, motors and indoor air-quality products.