William Blair Has Bullish Estimate for Watsco Q2 Earnings

Watsco, Inc. (NYSE:WSO) – Equities research analysts at William Blair raised their Q2 2025 earnings estimates for shares of Watsco in a report issued on Wednesday, January 15th. William Blair analyst R. Merkel now anticipates that the construction company will post earnings per share of $5.12 for the quarter, up from their prior estimate of $5.07. The consensus estimate for Watsco’s current full-year earnings is $12.97 per share. William Blair also issued estimates for Watsco’s Q3 2025 earnings at $5.07 EPS, Q4 2025 earnings at $2.44 EPS and FY2026 earnings at $16.59 EPS.

WSO has been the topic of several other reports. Northcoast Research started coverage on shares of Watsco in a research note on Friday, November 22nd. They issued a “neutral” rating on the stock. Raymond James started coverage on shares of Watsco in a research note on Friday. They set a “market perform” rating on the stock. Finally, Robert W. Baird reduced their price target on shares of Watsco from $550.00 to $540.00 and set an “outperform” rating for the company in a research report on Thursday, October 24th. Three analysts have rated the stock with a hold rating and two have given a buy rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $488.33.

Watsco Trading Up 1.2 %

Watsco stock opened at $496.92 on Friday. The company has a fifty day simple moving average of $508.48 and a 200-day simple moving average of $492.42. The stock has a market cap of $20.07 billion, a P/E 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.

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

Hedge Funds Weigh In On Watsco

A number of large investors have recently modified their holdings of WSO. Acadian Asset Management LLC purchased a new position in shares of Watsco in the 2nd quarter valued at about $372,000. American Century Companies Inc. increased its holdings in Watsco by 3.9% in the second quarter. American Century Companies Inc. now owns 13,733 shares of the construction company’s stock valued at $6,362,000 after buying an additional 513 shares in the last quarter. Virtu Financial LLC acquired a new stake in shares of Watsco during the 2nd quarter valued at approximately $1,060,000. Argent Trust Co lifted its position in shares of Watsco by 1.7% during the 2nd quarter. Argent Trust Co now owns 5,806 shares of the construction company’s stock valued at $2,690,000 after acquiring an additional 97 shares during the period. Finally, Vanguard Personalized Indexing Management LLC boosted its stake in shares of Watsco by 22.7% during the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 3,499 shares of the construction company’s stock worth $1,621,000 after acquiring an additional 648 shares in the last quarter. 89.71% of the stock is owned by hedge funds and other 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 shares were sold at an average price of $508.21, for a total transaction of $5,589,293.58. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 12.86% of the company’s stock.

Watsco Announces Dividend

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

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.