Analysts Anticipate Watsco Inc (WSO) Will Announce Quarterly Sales of $1.31 Billion

Equities research analysts predict that Watsco Inc (NYSE:WSO) will post sales of $1.31 billion for the current fiscal quarter, Zacks reports. Five analysts have issued estimates for Watsco’s earnings, with estimates ranging from $1.30 billion to $1.32 billion. Watsco posted sales of $1.23 billion in the same quarter last year, which would indicate a positive year-over-year growth rate of 6.5%. The firm is scheduled to announce its next quarterly earnings results on Wednesday, October 24th.

On average, analysts expect that Watsco will report full year sales of $4.58 billion for the current year, with estimates ranging from $4.56 billion to $4.60 billion. For the next year, analysts anticipate that the business will post sales of $4.80 billion per share, with estimates ranging from $4.69 billion to $4.89 billion. Zacks Investment Research’s sales calculations are a mean average based on a survey of sell-side research firms that that provide coverage for Watsco.

Watsco (NYSE:WSO) last posted its quarterly earnings data on Wednesday, July 25th. The construction company reported $2.40 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $2.47 by ($0.07). The firm had revenue of $1.33 billion for the quarter, compared to analysts’ expectations of $1.34 billion. Watsco had a return on equity of 14.26% and a net margin of 5.05%. Watsco’s revenue was up 4.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.07 earnings per share.

A number of equities analysts have issued reports on WSO shares. Zacks Investment Research raised shares of Watsco from a “hold” rating to a “buy” rating and set a $205.00 price objective on the stock in a report on Monday, April 16th. Robert W. Baird lifted their target price on Watsco from $176.00 to $185.00 and gave the stock an “outperform” rating in a research note on Wednesday, April 25th. Stifel Nicolaus lifted their target price on Watsco from $191.00 to $194.00 and gave the stock a “buy” rating in a research note on Wednesday, April 25th. Stephens set a $185.00 target price on Watsco and gave the stock a “hold” rating in a research note on Tuesday, April 24th. Finally, Seaport Global Securities cut Watsco from a “buy” rating to a “neutral” rating in a research note on Thursday, July 26th. Two analysts have rated the stock with a sell rating, six have issued a hold rating and four have assigned a buy rating to the company’s stock. Watsco has an average rating of “Hold” and a consensus target price of $184.14.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Cadence Capital Management LLC raised its stake in shares of Watsco by 8.7% during the 2nd quarter. Cadence Capital Management LLC now owns 3,740 shares of the construction company’s stock worth $667,000 after purchasing an additional 299 shares during the period. Louisiana State Employees Retirement System raised its stake in Watsco by 3.6% in the 2nd quarter. Louisiana State Employees Retirement System now owns 8,700 shares of the construction company’s stock valued at $1,551,000 after acquiring an additional 300 shares during the period. State Board of Administration of Florida Retirement System raised its stake in Watsco by 0.9% in the 2nd quarter. State Board of Administration of Florida Retirement System now owns 38,350 shares of the construction company’s stock valued at $6,837,000 after acquiring an additional 330 shares during the period. Donaldson Capital Management LLC raised its stake in Watsco by 23.8% in the 2nd quarter. Donaldson Capital Management LLC now owns 1,745 shares of the construction company’s stock valued at $311,000 after acquiring an additional 335 shares during the period. Finally, Meadow Creek Investment Management LLC raised its stake in Watsco by 12.6% in the 2nd quarter. Meadow Creek Investment Management LLC now owns 3,146 shares of the construction company’s stock valued at $561,000 after acquiring an additional 352 shares during the period. Institutional investors own 82.13% of the company’s stock.

Watsco opened at $171.95 on Friday, according to MarketBeat Ratings. The company has a current ratio of 3.10, a quick ratio of 1.43 and a debt-to-equity ratio of 0.09. The firm has a market cap of $6.48 billion, a price-to-earnings ratio of 31.38 and a beta of 0.75. Watsco has a 1 year low of $141.61 and a 1 year high of $192.94.

The firm also recently announced a quarterly dividend, which was paid on Tuesday, July 31st. Stockholders of record on Tuesday, July 17th were paid a dividend of $1.45 per share. This represents a $5.80 dividend on an annualized basis and a dividend yield of 3.37%. The ex-dividend date was Monday, July 16th. Watsco’s payout ratio is 105.84%.

About Watsco

Watsco, Inc, together with its subsidiaries, distributes air conditioning, heating, and refrigeration equipment; and related parts and supplies in the United States, Canada, Mexico, and Puerto Rico. It offers residential ducted and ductless air conditioners; gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment.

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