Equities Analysts Set Expectations for Watsco Q1 Earnings

Watsco, Inc. (NYSE:WSO) – Stock analysts at Zacks Research decreased their Q1 2026 earnings per share estimates for shares of Watsco in a research note issued on Tuesday, March 10th. Zacks Research analyst Team now forecasts that the construction company will earn $1.74 per share 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.

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

Other equities research analysts have also recently issued research reports about the company. JPMorgan Chase & Co. boosted their price objective on Watsco from $370.00 to $400.00 and gave the stock a “neutral” rating in a report on Thursday, February 19th. UBS Group began coverage on shares of Watsco in a report on Monday, January 5th. They set a “neutral” rating and a $370.00 price target on the stock. Wolfe Research set a $349.00 target price on Watsco in a report on Tuesday, December 9th. KeyCorp reissued a “sector weight” rating on shares of Watsco in a research note on Friday, December 12th. Finally, Morgan Stanley reduced their target price on Watsco from $460.00 to $370.00 and set an “equal weight” rating on the stock in a report on Wednesday, January 14th. 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 has an average rating of “Hold” and an average price target of $409.00.

Watsco Stock Performance

Shares of WSO opened at $379.47 on Wednesday. Watsco has a 52 week low of $323.05 and a 52 week high of $521.70. The firm has a market cap of $15.39 billion, a P/E ratio of 31.33 and a beta of 1.03. The firm’s 50-day simple moving average is $392.02 and its 200 day simple moving average is $377.04.

Hedge Funds Weigh In On Watsco

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Empowered Funds LLC lifted its stake in Watsco by 4.1% during the first quarter. Empowered Funds LLC now owns 5,927 shares of the construction company’s stock worth $3,013,000 after purchasing an additional 232 shares during the last quarter. Savant Capital LLC raised its position in Watsco by 14.9% during the 2nd quarter. Savant Capital LLC now owns 742 shares of the construction company’s stock valued at $328,000 after purchasing an additional 96 shares during the last quarter. Aviva PLC lifted its holdings in Watsco by 2,042.9% in the 2nd quarter. Aviva PLC now owns 25,693 shares of the construction company’s stock worth $11,347,000 after buying an additional 24,494 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. grew its position in shares of Watsco by 7.3% in the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 29,386 shares of the construction company’s stock worth $12,977,000 after buying an additional 1,994 shares during the last quarter. Finally, ProShare Advisors LLC increased its stake in shares of Watsco by 4.2% during the second quarter. ProShare Advisors LLC now owns 1,546 shares of the construction company’s stock valued at $683,000 after buying an additional 62 shares during the period. 89.71% of the stock is currently owned by hedge funds and other institutional investors.

Watsco Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 30th. Investors of record on Friday, January 16th were issued a dividend of $3.00 per share. 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 is 99.09%.

Key Headlines Impacting Watsco

Here are the key news stories impacting Watsco this week:

• Positive Sentiment: Short interest fell 12.4% to 3.08M shares as of Feb. 27, lowering the short-interest ratio to ~7.8 days and removing some downside pressure from crowded bearish bets.
• Positive Sentiment: Zacks raised several later-period estimates and long-range outlooks — including Q3 2027 (to $4.77), Q4 2027 (to $2.42) and FY2028 (to $15.63) — signaling upside to 2027–2028 earnings expectations even as near-term estimates move around.
• Positive Sentiment: Bullish coverage highlighting Watsco as an undervalued HVAC/R player with strong dividend-growth potential may support buyer interest for long-term investors. Article Title
• Neutral Sentiment: Zacks continues to carry a “Hold” rating on WSO; its revisions are mixed across quarters, so analyst sentiment is not turning uniformly bullish or bearish at this stage.
• Negative Sentiment: Zacks cut several near-term forecasts and trimmed FY2027: Q1 2026 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), Q2 2027 to $4.74 (from $4.97) and lowered FY2027 to $13.83 (from $13.95). These downgrades increase near-term earnings risk and likely weigh on the stock today.
• Negative Sentiment: Negative media coverage arguing reasons to avoid WSO could amplify short-term selling pressure from momentum or retail investors. Article Title

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.