William Blair Has Strong Forecast for Watsco FY2024 Earnings

Watsco, Inc. (NYSE:WSO) – Stock analysts at William Blair lifted their FY2024 earnings per share (EPS) estimates for shares of Watsco in a research note issued on Wednesday, January 15th. William Blair analyst R. Merkel now expects that the construction company will post earnings per share of $13.13 for the year, up from their previous forecast of $12.75. The consensus estimate for Watsco’s current full-year earnings is $12.97 per share. William Blair also issued estimates for Watsco’s Q4 2024 earnings at $2.23 EPS and FY2025 earnings at $14.85 EPS.

Watsco (NYSE:WSO) last announced its earnings results on Wednesday, October 23rd. The construction company reported $4.22 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.73 by ($0.51). Watsco had a net margin of 6.99% and a return on equity of 17.77%. The firm had revenue of $2.16 billion during the quarter, compared to analyst estimates of $2.24 billion. During the same period in the prior year, the business posted $4.35 EPS. The firm’s quarterly revenue was up 1.6% compared to the same quarter last year.

Several other equities research analysts have also recently commented on the stock. Raymond James began coverage on shares of Watsco in a research report on Friday. They set a “market perform” rating on the stock. Robert W. Baird lowered their price target on Watsco from $550.00 to $540.00 and set an “outperform” rating on the stock in a research report on Thursday, October 24th. Finally, Northcoast Research started coverage on shares of Watsco in a research report on Friday, November 22nd. They set a “neutral” rating for the company. Three investment analysts have rated the stock with a hold rating and two have given a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $488.33.

Watsco Stock Up 1.2 %

NYSE WSO opened at $496.92 on Monday. The company has a market capitalization of $20.07 billion, a PE ratio of 38.40 and a beta of 0.95. Watsco has a 12-month low of $373.33 and a 12-month high of $571.41. The firm’s 50 day moving average is $507.68 and its 200-day moving average is $492.62.

Watsco Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, January 31st. Investors of record on Friday, January 17th will be paid a $2.70 dividend. The ex-dividend date of this dividend is Friday, January 17th. This represents a $10.80 annualized dividend and a dividend yield of 2.17%. Watsco’s dividend payout ratio (DPR) is presently 83.46%.

Insider Buying and Selling

In other Watsco news, EVP Barry S. Logan sold 10,998 shares of Watsco stock in a transaction 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 legal filing with the Securities & Exchange Commission, which is available through this link. 12.86% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. Quarry LP bought a new position in Watsco in the second quarter valued at approximately $26,000. Ashton Thomas Securities LLC bought a new stake in Watsco during the third quarter worth $43,000. Massmutual Trust Co. FSB ADV boosted its holdings in shares of Watsco by 30.6% in the 3rd quarter. Massmutual Trust Co. FSB ADV now owns 94 shares of the construction company’s stock valued at $46,000 after purchasing an additional 22 shares in the last quarter. Brooklyn Investment Group bought a new position in shares of Watsco in the 3rd quarter valued at $48,000. Finally, MCF Advisors LLC raised its holdings in shares of Watsco by 27.8% during the 3rd quarter. MCF Advisors LLC now owns 115 shares of the construction company’s stock worth $57,000 after buying an additional 25 shares in the last quarter. Institutional investors own 89.71% of the company’s stock.

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.