Watsco (NYSE:WSO) Sets New 52-Week Low After Earnings Miss

Watsco, Inc. (NYSE:WSO) shares hit a new 52-week low on Wednesday following a dissappointing earnings announcement. The company traded as low as $312.42 and last traded at $324.6940, with a volume of 143433 shares changing hands. The stock had previously closed at $367.51.

The construction company reported $4.00 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.41 by ($0.41). Watsco had a return on equity of 15.31% and a net margin of 6.85%.The firm had revenue of $2.10 billion for the quarter, compared to the consensus estimate of $2.14 billion. During the same period in the prior year, the company posted $4.52 earnings per share. Watsco’s quarterly revenue was up 2.1% on a year-over-year basis.

Watsco Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Thursday, July 16th will be issued a dividend of $3.30 per share. This represents a $13.20 dividend on an annualized basis and a yield of 4.2%. The ex-dividend date is Thursday, July 16th. Watsco’s dividend payout ratio is 109.54%.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on WSO shares. Wall Street Zen upgraded Watsco from a “sell” rating to a “hold” rating in a research note on Saturday, May 2nd. DA Davidson initiated coverage on Watsco in a report on Tuesday, June 16th. They issued a “neutral” rating and a $385.00 target price on the stock. Stephens upped their price target on Watsco from $475.00 to $485.00 and gave the stock an “overweight” rating in a report on Wednesday, April 29th. Morgan Stanley increased their price objective on Watsco from $370.00 to $405.00 and gave the company an “equal weight” rating in a research report on Friday, July 10th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Watsco in a research report on Friday, June 26th. Two analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $404.88.

Institutional Trading of Watsco

A number of institutional investors and hedge funds have recently modified their holdings of WSO. CWM LLC raised its stake in shares of Watsco by 3.8% in the fourth quarter. CWM LLC now owns 710 shares of the construction company’s stock valued at $239,000 after purchasing an additional 26 shares in the last quarter. Assetmark Inc. boosted its stake in Watsco by 2.7% during the first quarter. Assetmark Inc. now owns 1,115 shares of the construction company’s stock worth $406,000 after buying an additional 29 shares in the last quarter. Massachusetts Financial Services Co. MA boosted its stake in Watsco by 2.0% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 1,559 shares of the construction company’s stock worth $525,000 after buying an additional 30 shares in the last quarter. Northwestern Mutual Investment Management Company LLC increased its holdings in Watsco by 0.4% in the 4th quarter. Northwestern Mutual Investment Management Company LLC now owns 7,814 shares of the construction company’s stock valued at $2,633,000 after buying an additional 34 shares during the period. Finally, Modern Wealth Management LLC increased its holdings in Watsco by 5.2% in the 2nd quarter. Modern Wealth Management LLC now owns 783 shares of the construction company’s stock valued at $346,000 after buying an additional 39 shares during the period. 89.71% of the stock is currently owned by institutional investors.

Watsco Stock Performance

The company has a market cap of $12.71 billion, a price-to-earnings ratio of 25.94 and a beta of 1.02. The business’s 50 day moving average price is $383.45 and its 200-day moving average price is $393.67.

About Watsco

Watsco, Inc is the largest distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment, parts and supplies in the United States. Headquartered in Miami, Florida, the company operates a network of more than 600 branches across the continental U.S., Canada and Puerto Rico. Watsco serves residential and commercial contractors by providing essential components for climate control systems, including air conditioners, furnaces, heat pumps, coils, refrigerants, controls and electrical and piping supplies.

Founded in 1947, Watsco has grown from a single regional distributor into an industry leader through a combination of organic expansion, acquisitions and strategic partnerships with original equipment manufacturers such as Carrier, Trane, Goodman and Lennox.