Brokers Issue Forecasts for Watsco’s Q2 Earnings (NYSE:WSO)

Watsco, Inc. (NYSE:WSO) – Research analysts at Zacks Research increased their Q2 2025 earnings estimates for shares of Watsco in a report released on Tuesday, March 11th. Zacks Research analyst R. Department now forecasts 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.

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

Watsco Stock Performance

WSO stock opened at $508.47 on Thursday. The firm has a market cap of $20.54 billion, a P/E ratio of 38.38 and a beta of 0.92. Watsco has a 1 year low of $393.88 and a 1 year high of $571.42. The stock has a 50-day simple moving average of $489.58 and a 200-day simple moving average of $494.99.

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

Institutional Trading of Watsco

A number of institutional investors and hedge funds have recently modified their holdings of WSO. Rialto Wealth Management LLC bought a new stake in shares of Watsco during the 4th quarter valued at about $31,000. Wingate Wealth Advisors Inc. acquired a new position in Watsco in the fourth quarter valued at approximately $36,000. Ashton Thomas Securities LLC acquired a new position in Watsco in the third quarter valued at approximately $43,000. Quarry LP grew its holdings in shares of Watsco by 57.9% during the third quarter. Quarry LP now owns 90 shares of the construction company’s stock valued at $44,000 after purchasing an additional 33 shares during the last quarter. Finally, Brooklyn Investment Group acquired a new stake in shares of Watsco during the 3rd quarter worth approximately $48,000. 89.71% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other Watsco news, EVP Barry S. Logan sold 10,998 shares of Watsco stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $508.21, for a total value of $5,589,293.58. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 12.86% of the company’s stock.

Watsco Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, January 31st. Stockholders of record on Friday, January 17th were issued a $2.70 dividend. The ex-dividend date of this dividend was Friday, January 17th. This represents a $10.80 dividend on an annualized basis and a dividend yield of 2.12%. Watsco’s dividend payout ratio (DPR) is 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.