Zacks Research Has Positive Estimate for Watsco Q2 Earnings

Watsco, Inc. (NYSE:WSO) – Equities research analysts at Zacks Research boosted their Q2 2025 EPS estimates for Watsco in a research note issued on Tuesday, March 11th. Zacks Research analyst R. Department now expects that the construction company will post earnings per share of $4.78 for the quarter, up from their prior estimate of $4.75. The consensus estimate for Watsco’s current full-year earnings is $14.62 per share. Zacks Research also issued estimates for Watsco’s Q4 2025 earnings at $2.51 EPS, Q1 2026 earnings at $2.48 EPS, Q2 2026 earnings at $5.29 EPS and FY2027 earnings at $17.26 EPS.

Watsco (NYSE:WSO) last released its quarterly earnings data on Tuesday, February 18th. The construction company reported $2.37 earnings per share for the quarter, beating analysts’ consensus estimates of $2.13 by $0.24. Watsco had a net margin of 7.04% and a return on equity of 17.59%. The firm had revenue of $1.75 billion for the quarter, compared to analyst estimates of $1.67 billion.

WSO has been the subject of a number of other research reports. Robert W. Baird raised their price objective on shares of Watsco from $540.00 to $560.00 and gave the stock an “outperform” rating in a report on Wednesday, February 19th. Raymond James began coverage on shares of Watsco in a research note on Friday, January 17th. They issued a “market perform” rating for the company. Loop Capital raised their price objective on shares of Watsco from $450.00 to $460.00 and gave the company a “hold” rating in a research report on Thursday, February 27th. Finally, Northcoast Research initiated coverage on shares of Watsco in a research report on Friday, November 22nd. They set a “neutral” rating for the company. Four investment analysts have rated the stock with a hold rating and two have issued a buy rating to the company’s stock. Based on data from MarketBeat, Watsco has a consensus rating of “Hold” and a consensus target price of $486.25.

Watsco Price Performance

Shares of WSO stock opened at $504.82 on Thursday. The firm has a 50-day moving average of $488.48 and a 200-day moving average of $494.83. The company has a market cap of $20.39 billion, a P/E ratio of 38.10 and a beta of 0.92. Watsco has a one year low of $393.88 and a one year high of $571.41.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in WSO. Toronto Dominion Bank boosted its holdings in shares of Watsco by 32.2% during the 3rd quarter. Toronto Dominion Bank now owns 4,258 shares of the construction company’s stock valued at $2,094,000 after buying an additional 1,038 shares in the last quarter. Citizens Financial Group Inc. RI boosted its stake in Watsco by 40.6% in the 3rd quarter. Citizens Financial Group Inc. RI now owns 3,217 shares of the construction company’s stock worth $1,582,000 after purchasing an additional 929 shares in the last quarter. Larson Financial Group LLC boosted its stake in Watsco by 3,571.0% in the 3rd quarter. Larson Financial Group LLC now owns 1,138 shares of the construction company’s stock worth $560,000 after purchasing an additional 1,107 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. boosted its stake in Watsco by 1.7% in the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 64,758 shares of the construction company’s stock worth $31,853,000 after purchasing an additional 1,074 shares in the last quarter. Finally, Franklin Resources Inc. lifted its stake in Watsco by 5.6% during the 3rd quarter. Franklin Resources Inc. now owns 51,590 shares of the construction company’s stock valued at $25,645,000 after acquiring an additional 2,738 shares during the period. 89.71% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other Watsco news, EVP Barry S. Logan sold 10,998 shares of the business’s stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $508.21, for a total transaction of $5,589,293.58. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 12.86% of the stock is owned by insiders.

Watsco Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, January 31st. Investors of record on Friday, January 17th were paid a $2.70 dividend. This represents a $10.80 annualized dividend and a dividend yield of 2.14%. The ex-dividend date of this dividend was Friday, January 17th. Watsco’s payout ratio is 81.51%.

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.