William Blair Weighs in on Watsco, Inc.’s FY2024 Earnings (NYSE:WSO)

Watsco, Inc. (NYSE:WSO) – Stock analysts at William Blair lifted their FY2024 earnings per share estimates for shares of Watsco in a research report issued to clients and investors on Wednesday, April 24th. William Blair analyst R. Merkel now expects that the construction company will post earnings of $15.44 per share for the year, up from their previous estimate of $15.40. The consensus estimate for Watsco’s current full-year earnings is $14.25 per share. William Blair also issued estimates for Watsco’s FY2025 earnings at $18.74 EPS.

A number of other research analysts have also commented on WSO. Robert W. Baird increased their price objective on Watsco from $420.00 to $460.00 and gave the company an “outperform” rating in a research report on Thursday, April 25th. Stephens reaffirmed an “overweight” rating and set a $500.00 price target on shares of Watsco in a research note on Thursday, April 25th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and three have assigned a buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $404.25.

Watsco Price Performance

Shares of WSO stock opened at $447.72 on Monday. The company has a current ratio of 2.92, a quick ratio of 1.31 and a debt-to-equity ratio of 0.01. The firm’s 50 day moving average is $413.68 and its 200-day moving average is $400.10. Watsco has a 1 year low of $315.17 and a 1 year high of $451.29. The firm has a market capitalization of $17.68 billion, a price-to-earnings ratio of 34.44 and a beta of 0.89.

Watsco (NYSE:WSO) last issued its quarterly earnings results on Wednesday, April 24th. The construction company reported $2.17 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.26 by ($0.09). The company had revenue of $1.56 billion for the quarter, compared to analyst estimates of $1.59 billion. Watsco had a return on equity of 19.26% and a net margin of 7.03%. The firm’s quarterly revenue was up .9% on a year-over-year basis. During the same quarter last year, the company earned $2.83 EPS.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of WSO. Norges Bank bought a new position in Watsco during the 4th quarter worth about $102,958,000. International Assets Investment Management LLC grew its holdings in shares of Watsco by 40,702.6% during the fourth quarter. International Assets Investment Management LLC now owns 205,237 shares of the construction company’s stock worth $87,938,000 after buying an additional 204,734 shares in the last quarter. Invesco Ltd. raised its position in Watsco by 120.4% in the 3rd quarter. Invesco Ltd. now owns 300,059 shares of the construction company’s stock valued at $113,338,000 after buying an additional 163,915 shares during the last quarter. Envestnet Asset Management Inc. lifted its stake in Watsco by 111.1% in the 3rd quarter. Envestnet Asset Management Inc. now owns 292,832 shares of the construction company’s stock valued at $110,608,000 after acquiring an additional 154,105 shares in the last quarter. Finally, AEGON ASSET MANAGEMENT UK Plc bought a new stake in Watsco in the 4th quarter valued at approximately $64,908,000. Institutional investors and hedge funds own 89.71% of the company’s stock.

Watsco Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, April 30th. Stockholders of record on Monday, April 15th were paid a $2.70 dividend. The ex-dividend date of this dividend was Friday, April 12th. This represents a $10.80 dividend on an annualized basis and a dividend yield of 2.41%. This is an increase from Watsco’s previous quarterly dividend of $2.45. Watsco’s dividend payout ratio is 83.08%.

About Watsco

Watsco, Inc, together with its subsidiaries, engages in the distribution of air conditioning, heating, refrigeration equipment, and related parts and supplies in the United States and internationally. The company distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment.