Zacks Research Has Positive Estimate for Watsco Q2 Earnings

Watsco, Inc. (NYSE:WSO) – Stock analysts at Zacks Research upped their Q2 2025 earnings estimates for shares of Watsco in a research report issued on Tuesday, March 11th. Zacks Research analyst R. Department now anticipates that the construction company will earn $4.78 per share for the quarter, up from their previous forecast 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.

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

Watsco Trading Down 0.1 %

Watsco 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 firm has a market capitalization of $20.39 billion, a price-to-earnings ratio of 38.10 and a beta of 0.92. Watsco has a 12-month low of $393.88 and a 12-month high of $571.41.

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

Institutional Investors Weigh In On Watsco

Hedge funds have recently bought and sold shares of the stock. Toronto Dominion Bank boosted its position in 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 in the last quarter. Citizens Financial Group Inc. RI raised its stake in shares of Watsco by 40.6% during the 3rd quarter. Citizens Financial Group Inc. RI now owns 3,217 shares of the construction company’s stock worth $1,582,000 after buying an additional 929 shares during the period. Larson Financial Group LLC raised its stake in shares of Watsco by 3,571.0% during 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 during the period. Sumitomo Mitsui Trust Group Inc. raised its stake in shares of Watsco by 1.7% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 64,758 shares of the construction company’s stock worth $31,853,000 after buying an additional 1,074 shares during the period. Finally, Franklin Resources Inc. raised its stake in shares of Watsco by 5.6% during the 3rd quarter. Franklin Resources Inc. now owns 51,590 shares of the construction company’s stock worth $25,645,000 after buying an additional 2,738 shares during the period. Hedge funds and other institutional investors own 89.71% of the company’s stock.

Insider Activity

In related news, EVP Barry S. Logan sold 10,998 shares of the company’s stock in a transaction that occurred on Wednesday, December 18th. The stock was 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 SEC, which is available at this link. Corporate insiders own 12.86% of the company’s stock.

Watsco Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 31st. Stockholders of record on Friday, January 17th were issued a dividend of $2.70 per share. The ex-dividend date was Friday, January 17th. This represents a $10.80 annualized dividend and a dividend yield of 2.14%. Watsco’s dividend payout ratio (DPR) is currently 81.51%.

Watsco Company Profile

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.