Zacks Research Analysts Raise Earnings Estimates for Watsco

Watsco, Inc. (NYSE:WSO) – Stock analysts at Zacks Research lifted their Q4 2025 EPS estimates for Watsco in a report released on Wednesday, May 14th. Zacks Research analyst R. Department now expects that the construction company will post earnings per share of $2.53 for the quarter, up from their previous forecast of $2.51. The consensus estimate for Watsco’s current full-year earnings is $14.62 per share. Zacks Research also issued estimates for Watsco’s Q2 2026 earnings at $5.27 EPS and FY2026 earnings at $15.65 EPS.

WSO has been the topic of several other research reports. Mizuho set a $490.00 price target on Watsco in a research note on Thursday, April 24th. Morgan Stanley began coverage on Watsco in a research note on Monday, April 14th. They issued an “equal weight” rating and a $515.00 target price on the stock. Robert W. Baird lowered their price target on Watsco from $560.00 to $540.00 and set an “outperform” rating for the company in a research report on Thursday, April 24th. UBS Group dropped their price target on shares of Watsco from $475.00 to $455.00 and set a “neutral” rating on the stock in a research note on Thursday, April 24th. Finally, StockNews.com upgraded shares of Watsco from a “sell” rating to a “hold” rating in a research note on Friday, May 9th. Seven equities research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $480.83.

Watsco Price Performance

WSO stock opened at $470.38 on Monday. Watsco has a 1 year low of $439.08 and a 1 year high of $571.42. The firm has a 50-day moving average of $489.05 and a 200 day moving average of $497.39. The company has a market cap of $19.01 billion, a P/E ratio of 35.50 and a beta of 1.11.

Watsco (NYSE:WSO) last announced its earnings results on Wednesday, April 23rd. The construction company reported $1.93 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.29 by ($0.36). Watsco had a net margin of 7.04% and a return on equity of 17.59%. The company had revenue of $1.53 billion for the quarter, compared to the consensus estimate of $1.66 billion. During the same quarter in the previous year, the firm earned $2.17 earnings per share. The company’s revenue for the quarter was down 2.2% compared to the same quarter last year.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Opal Wealth Advisors LLC purchased a new position in Watsco during the first quarter worth approximately $25,000. Manitou Investment Management Ltd. purchased a new position in shares of Watsco during the 1st quarter valued at approximately $25,000. WPG Advisers LLC acquired a new stake in Watsco in the 1st quarter valued at $25,000. TCTC Holdings LLC increased its holdings in Watsco by 115.4% in the 1st quarter. TCTC Holdings LLC now owns 56 shares of the construction company’s stock worth $28,000 after acquiring an additional 30 shares in the last quarter. Finally, City Holding Co. acquired a new position in Watsco during the first quarter worth $29,000. Institutional investors and hedge funds own 89.71% of the company’s stock.

Watsco Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 30th. Shareholders of record on Tuesday, April 15th were issued a $3.00 dividend. This is a boost from Watsco’s previous quarterly dividend of $2.70. The ex-dividend date of this dividend was Tuesday, April 15th. This represents a $12.00 dividend on an annualized basis and a yield of 2.55%. Watsco’s payout ratio is presently 92.24%.

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.