Watsco, Inc. (NYSE:WSO - Free Report) - Equities researchers at William Blair increased their Q2 2025 earnings per share (EPS) estimates for Watsco in a research report issued on Wednesday, January 15th. William Blair analyst R. Merkel now expects that the construction company will post earnings per share of $5.12 for the quarter, up from their prior forecast of $5.07. The consensus estimate for Watsco's current full-year earnings is $12.97 per share. William Blair also issued estimates for Watsco's Q3 2025 earnings at $5.07 EPS, Q4 2025 earnings at $2.44 EPS and FY2026 earnings at $16.59 EPS.
A number of other research firms have also weighed in on WSO. Robert W. Baird reduced their target price on shares of Watsco from $550.00 to $540.00 and set an "outperform" rating on the stock in a report on Thursday, October 24th. Northcoast Research started coverage on Watsco in a research note on Friday, November 22nd. They set a "neutral" rating for the company. Finally, Raymond James assumed coverage on Watsco in a report on Friday. They issued a "market perform" rating for the company. Three research analysts have rated the stock with a hold rating and two have given a buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $488.33.
Get Our Latest Stock Analysis on Watsco
Shares of WSO stock opened at $490.84 on Friday. The company has a market cap of $19.82 billion, a PE ratio of 37.93 and a beta of 0.95. The stock's fifty day moving average price is $509.11 and its two-hundred day moving average price is $492.08. Watsco has a fifty-two week low of $373.33 and a fifty-two week high of $571.41.
Watsco (NYSE:WSO - Get Free Report) last released its quarterly earnings results on Wednesday, October 23rd. The construction company reported $4.22 earnings per share for the quarter, missing the consensus estimate of $4.73 by ($0.51). The company had revenue of $2.16 billion during the quarter, compared to the consensus estimate of $2.24 billion. Watsco had a net margin of 6.99% and a return on equity of 17.77%. The firm's revenue was up 1.6% compared to the same quarter last year. During the same period in the prior year, the company earned $4.35 earnings per share.
The company also recently announced a quarterly dividend, which will be paid on Friday, January 31st. Stockholders of record on Friday, January 17th will be given a $2.70 dividend. This represents a $10.80 annualized dividend and a dividend yield of 2.20%. The ex-dividend date of this dividend is Friday, January 17th. Watsco's dividend payout ratio is currently 83.46%.
In related news, EVP Barry S. Logan sold 10,998 shares of the stock in a transaction dated Wednesday, December 18th. The shares were sold at an average price of $508.21, for a total value of $5,589,293.58. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 12.86% of the stock is currently owned by corporate insiders.
Several hedge funds and other institutional investors have recently made changes to their positions in WSO. Toronto Dominion Bank raised its position in shares of Watsco by 32.2% in the 3rd quarter. Toronto Dominion Bank now owns 4,258 shares of the construction company's stock worth $2,094,000 after purchasing an additional 1,038 shares during the last quarter. Citizens Financial Group Inc. RI increased its holdings in shares of 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 increased its holdings 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 buying an additional 1,107 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. lifted its stake in Watsco by 1.7% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 64,758 shares of the construction company's stock valued at $31,853,000 after acquiring an additional 1,074 shares during the period. Finally, Interval Partners LP bought a new position in Watsco during the second quarter valued at approximately $11,740,000. Hedge funds and other institutional investors own 89.71% of the company's stock.
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.
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