Zacks: Analysts Expect Watsco, Inc. (NYSE:WSO) Will Post Quarterly Sales of $1.79 Billion

Analysts expect that Watsco, Inc. (NYSE:WSO) will report sales of $1.79 billion for the current quarter, according to Zacks Investment Research. Five analysts have provided estimates for Watsco’s earnings. The highest sales estimate is $1.83 billion and the lowest is $1.76 billion. Watsco posted sales of $1.54 billion during the same quarter last year, which indicates a positive year over year growth rate of 16.2%. The company is scheduled to announce its next earnings results on Thursday, October 28th.

On average, analysts expect that Watsco will report full year sales of $6.08 billion for the current year, with estimates ranging from $5.97 billion to $6.16 billion. For the next year, analysts expect that the firm will post sales of $6.37 billion, with estimates ranging from $5.94 billion to $6.53 billion. Zacks’ sales calculations are an average based on a survey of research analysts that that provide coverage for Watsco.

Watsco (NYSE:WSO) last released its quarterly earnings results on Thursday, July 22nd. The construction company reported $3.71 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $3.15 by $0.56. The firm had revenue of $1.85 billion during the quarter, compared to analyst estimates of $1.68 billion. Watsco had a return on equity of 19.20% and a net margin of 6.19%. The business’s revenue for the quarter was up 36.5% compared to the same quarter last year. During the same period in the previous year, the company posted $2.26 EPS.

Several brokerages recently weighed in on WSO. Stephens upgraded Watsco from an “equal weight” rating to an “overweight” rating and boosted their target price for the stock from $300.00 to $350.00 in a research note on Friday, July 23rd. Loop Capital assumed coverage on Watsco in a research note on Tuesday, August 3rd. They set a “hold” rating and a $300.00 price target on the stock. Finally, Wolfe Research downgraded Watsco from a “peer perform” rating to an “underperform” rating and dropped their price target for the company from $309.00 to $304.00 in a research note on Monday, July 12th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and two have assigned a buy rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $281.33.

WSO stock traded down $3.16 on Tuesday, hitting $277.27. 103,215 shares of the company’s stock were exchanged, compared to its average volume of 169,503. Watsco has a 12-month low of $216.25 and a 12-month high of $307.81. The firm has a 50 day moving average price of $281.49 and a two-hundred day moving average price of $278.77. The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.20 and a current ratio of 2.48. The stock has a market cap of $10.74 billion, a P/E ratio of 30.81 and a beta of 0.77.

The company also recently announced a quarterly dividend, which was paid on Friday, July 30th. Shareholders of record on Thursday, July 15th were issued a dividend of $1.95 per share. The ex-dividend date of this dividend was Wednesday, July 14th. This represents a $7.80 dividend on an annualized basis and a dividend yield of 2.81%. Watsco’s payout ratio is currently 111.27%.

Several institutional investors have recently made changes to their positions in the business. BlackRock Inc. grew its position in shares of Watsco by 6.9% in the first quarter. BlackRock Inc. now owns 3,689,071 shares of the construction company’s stock valued at $961,924,000 after purchasing an additional 236,583 shares in the last quarter. Baillie Gifford & Co. grew its position in shares of Watsco by 3.9% in the second quarter. Baillie Gifford & Co. now owns 2,071,403 shares of the construction company’s stock valued at $593,746,000 after purchasing an additional 76,830 shares in the last quarter. Charles Schwab Investment Management Inc. grew its position in shares of Watsco by 2.3% in the second quarter. Charles Schwab Investment Management Inc. now owns 1,052,571 shares of the construction company’s stock valued at $301,709,000 after purchasing an additional 23,273 shares in the last quarter. Kayne Anderson Rudnick Investment Management LLC grew its position in shares of Watsco by 14.3% in the second quarter. Kayne Anderson Rudnick Investment Management LLC now owns 883,507 shares of the construction company’s stock valued at $253,250,000 after purchasing an additional 110,314 shares in the last quarter. Finally, State Street Corp grew its position in shares of Watsco by 9.7% in the second quarter. State Street Corp now owns 858,503 shares of the construction company’s stock valued at $246,081,000 after purchasing an additional 76,258 shares in the last quarter. 77.78% of the stock is owned by institutional investors and hedge funds.

About Watsco

Watsco, Inc engages in distribution of air conditioning, heating and refrigeration equipment and related parts. Its products include residential central air conditioners, gas, electric & oil furnaces, commercial air conditioning & heating equipment, and other specialized equipment, parts, including replacement compressors, evaporator coils, motors and other component parts; and supplies, including thermostats, insulation material, refrigerants, ductwork, grills, registers, sheet metal, tools, copper tubing, concrete pads, tape, adhesives, and other ancillary supplies.

Recommended Story: Quick Ratio

Get a free copy of the Zacks research report on Watsco (WSO)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Earnings History and Estimates for Watsco (NYSE:WSO)

Receive News & Ratings for Watsco Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Watsco and related companies with MarketBeat.com's FREE daily email newsletter.