Watsco (NYSE:WSO) Announces Earnings Results

Watsco (NYSE:WSO) released its quarterly earnings data on Tuesday. The construction company reported $1.68 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.94 by ($0.26), FiscalAI reports. The company had revenue of $1.58 billion for the quarter, compared to analyst estimates of $1.62 billion. Watsco had a return on equity of 16.48% and a net margin of 7.04%.

Watsco Trading Up 1.0%

WSO opened at $419.33 on Tuesday. The stock has a market capitalization of $17.01 billion, a P/E ratio of 32.76 and a beta of 1.04. Watsco has a 12 month low of $323.05 and a 12 month high of $535.40. The firm’s fifty day simple moving average is $372.99 and its 200 day simple moving average is $378.49.

Watsco Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 30th. Investors of record on Friday, January 16th were given a $3.00 dividend. This represents a $12.00 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend was Friday, January 16th. Watsco’s payout ratio is currently 93.75%.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the stock. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Watsco in a report on Thursday, October 30th. KeyCorp reiterated a “sector weight” rating on shares of Watsco in a research report on Friday, December 12th. Morgan Stanley decreased their price objective on Watsco from $460.00 to $370.00 and set an “equal weight” rating on the stock in a research report on Wednesday, January 14th. Wolfe Research set a $349.00 price target on Watsco in a research report on Tuesday, December 9th. Finally, UBS Group began coverage on shares of Watsco in a research report on Monday, January 5th. They issued a “neutral” rating and a $370.00 price target on the stock. One research analyst has rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $404.14.

Institutional Investors Weigh In On Watsco

Hedge funds and other institutional investors have recently bought and sold shares of the company. Empowered Funds LLC lifted its position in Watsco by 4.1% during the 1st quarter. Empowered Funds LLC now owns 5,927 shares of the construction company’s stock worth $3,013,000 after buying an additional 232 shares in the last quarter. Bank of Nova Scotia lifted its stake in shares of Watsco by 95.0% during the 2nd quarter. Bank of Nova Scotia now owns 1,297 shares of the construction company’s stock worth $573,000 after buying an additional 632 shares during the last quarter. Sei Investments Co. boosted its holdings in shares of Watsco by 7.6% during the 2nd quarter. Sei Investments Co. now owns 50,442 shares of the construction company’s stock worth $22,275,000 after buying an additional 3,570 shares during the period. Treasurer of the State of North Carolina boosted its holdings in shares of Watsco by 2.8% during the second quarter. Treasurer of the State of North Carolina now owns 16,258 shares of the construction company’s stock worth $7,180,000 after acquiring an additional 437 shares during the period. Finally, Diversify Advisory Services LLC boosted its stake in Watsco by 12.0% in the 2nd quarter. Diversify Advisory Services LLC now owns 523 shares of the construction company’s stock valued at $221,000 after purchasing an additional 56 shares during the period. Institutional investors and hedge funds own 89.71% of the company’s stock.

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.