FY2026 Earnings Estimate for Watsco Issued By Zacks Research

Watsco, Inc. (NYSE:WSO) – Zacks Research lowered their FY2026 earnings per share estimates for Watsco in a research report issued on Tuesday, March 10th. Zacks Research analyst Team now forecasts that the construction company will post earnings per share of $12.38 for the year, down from their prior estimate of $12.93. Zacks Research has a “Hold” rating on the stock. The consensus estimate for Watsco’s current full-year earnings is $14.62 per share.

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

A number of other research analysts have also recently issued reports on the stock. JPMorgan Chase & Co. lifted their price objective on shares of Watsco from $370.00 to $400.00 and gave the company a “neutral” rating in a report on Thursday, February 19th. KeyCorp reissued a “sector weight” rating on shares of Watsco in a report on Friday, December 12th. Mizuho set a $425.00 target price on Watsco in a report on Wednesday, February 18th. Wolfe Research set a $349.00 price target on Watsco in a report on Tuesday, December 9th. Finally, Morgan Stanley dropped their price objective on Watsco from $460.00 to $370.00 and set an “equal weight” rating on the stock in a research note on Wednesday, January 14th. One equities research analyst has rated the stock with a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $409.00.

Watsco Trading Down 1.4%

Shares of WSO stock opened at $374.03 on Thursday. The firm has a fifty day simple moving average of $392.76 and a two-hundred day simple moving average of $377.01. Watsco has a 12 month low of $323.05 and a 12 month high of $521.70. The firm has a market capitalization of $15.17 billion, a PE ratio of 30.89 and a beta of 1.03.

Watsco Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, January 30th. Investors 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 annualized dividend and a yield of 3.2%. Watsco’s dividend payout ratio (DPR) is 99.09%.

Institutional Investors Weigh In On Watsco

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Bayban purchased a new stake in shares of Watsco during the fourth quarter worth $29,000. Taylor Securities Services Inc. purchased a new position in shares of Watsco in the fourth quarter valued at $7,952,000. Alpine Global Management LLC bought a new stake in shares of Watsco during the 4th quarter valued at $207,000. Anchor Investment Management LLC lifted its holdings in Watsco by 19.4% during the 4th quarter. Anchor Investment Management LLC now owns 21,804 shares of the construction company’s stock worth $7,347,000 after purchasing an additional 3,538 shares in the last quarter. Finally, River Road Asset Management LLC lifted its holdings in Watsco by 91.5% during the 4th quarter. River Road Asset Management LLC now owns 16,907 shares of the construction company’s stock worth $5,697,000 after purchasing an additional 8,076 shares in the last quarter. Institutional investors own 89.71% of the company’s stock.

Key Watsco News

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.