What is Zacks Research’s Estimate for Watsco Q1 Earnings?

Watsco, Inc. (NYSE:WSO) – Equities researchers at Zacks Research raised their Q1 2025 earnings per share estimates for shares of Watsco in a research note issued on Tuesday, March 11th. Zacks Research analyst R. Department now forecasts that the construction company will post earnings of $2.27 per share for the quarter, up from their previous forecast of $2.25. The consensus estimate for Watsco’s current full-year earnings is $14.62 per share. Zacks Research also issued estimates for Watsco’s Q3 2026 earnings at $5.32 EPS, Q4 2026 earnings at $2.85 EPS and FY2026 earnings at $15.93 EPS.

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

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

Watsco Stock Performance

Shares of NYSE WSO opened at $508.47 on Friday. Watsco has a 52 week low of $396.82 and a 52 week high of $571.42. The business has a 50 day simple moving average of $489.58 and a 200 day simple moving average of $495.15. The stock has a market cap of $20.54 billion, a price-to-earnings ratio of 38.38 and a beta of 0.92.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Centaurus Financial Inc. grew its stake in Watsco by 4.2% in the fourth quarter. Centaurus Financial Inc. now owns 6,423 shares of the construction company’s stock valued at $3,044,000 after purchasing an additional 261 shares in the last quarter. Siemens Fonds Invest GmbH grew its stake in Watsco by 215.0% in the fourth quarter. Siemens Fonds Invest GmbH now owns 4,193 shares of the construction company’s stock valued at $1,987,000 after purchasing an additional 2,862 shares in the last quarter. LifeWealth Investments LLC bought a new position in Watsco in the fourth quarter valued at approximately $220,000. B. Riley Wealth Advisors Inc. grew its stake in Watsco by 2.5% in the fourth quarter. B. Riley Wealth Advisors Inc. now owns 2,080 shares of the construction company’s stock valued at $986,000 after purchasing an additional 50 shares in the last quarter. Finally, Great Valley Advisor Group Inc. grew its stake in Watsco by 9.4% in the fourth quarter. Great Valley Advisor Group Inc. now owns 9,623 shares of the construction company’s stock valued at $4,560,000 after purchasing an additional 830 shares in the last quarter. 89.71% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In related news, EVP Barry S. Logan sold 10,998 shares of the stock in a transaction dated Wednesday, December 18th. The stock was sold at an average price of $508.21, for a total transaction of $5,589,293.58. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 12.86% of the stock is owned by corporate insiders.

Watsco Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, January 31st. Investors of record on Friday, January 17th were issued a dividend of $2.70 per share. 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 payout ratio is presently 81.51%.

About Watsco

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.