William Blair Weighs in on Watsco, Inc.’s Q4 2017 Earnings (NYSE:WSO)

Watsco, Inc. (NYSE:WSO) – William Blair upped their Q4 2017 earnings estimates for Watsco in a report released on Wednesday, according to Zacks Investment Research. William Blair analyst R. Merkel now anticipates that the construction company will post earnings per share of $0.96 for the quarter, up from their prior estimate of $0.89. William Blair also issued estimates for Watsco’s Q1 2018 earnings at $0.79 EPS, Q2 2018 earnings at $2.30 EPS, Q3 2018 earnings at $2.15 EPS, Q4 2018 earnings at $1.05 EPS, FY2018 earnings at $6.30 EPS and FY2019 earnings at $7.00 EPS.

Watsco (NYSE:WSO) last issued its quarterly earnings data on Wednesday, October 25th. The construction company reported $1.82 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.95 by ($0.13). The business had revenue of $1.23 billion for the quarter, compared to the consensus estimate of $1.26 billion. Watsco had a net margin of 4.46% and a return on equity of 15.00%. The company’s revenue was down .9% on a year-over-year basis. During the same period in the previous year, the firm earned $1.78 EPS.

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Several other analysts have also recently issued reports on the stock. Morgan Stanley upped their target price on shares of Watsco from $151.00 to $156.00 and gave the company an “underweight” rating in a research report on Thursday, October 26th. Stifel Nicolaus restated a “buy” rating and issued a $154.00 target price on shares of Watsco in a research note on Thursday, September 7th. BidaskClub downgraded shares of Watsco from a “buy” rating to a “hold” rating in a research note on Sunday, July 16th. Zacks Investment Research upgraded shares of Watsco from a “hold” rating to a “buy” rating and set a $169.00 target price on the stock in a research note on Tuesday, August 1st. Finally, Robert W. Baird reiterated a “buy” rating and set a $163.00 price objective on shares of Watsco in a research note on Friday, September 1st. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and three have assigned a buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and a consensus price target of $160.40.

Shares of Watsco (WSO) traded up $0.45 during trading on Thursday, reaching $165.05. 120,400 shares of the company traded hands, compared to its average volume of 279,263. The company has a market cap of $5,877.04, a P/E ratio of 30.65 and a beta of 0.83. The company has a debt-to-equity ratio of 0.21, a current ratio of 3.13 and a quick ratio of 1.42. Watsco has a one year low of $134.08 and a one year high of $167.94.

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, October 31st. Stockholders of record on Monday, October 16th were paid a dividend of $1.25 per share. The ex-dividend date of this dividend was Friday, October 13th. This represents a $5.00 dividend on an annualized basis and a dividend yield of 3.03%. Watsco’s dividend payout ratio is presently 92.42%.

Large investors have recently bought and sold shares of the stock. UBS Group AG lifted its position in Watsco by 67.0% during the first quarter. UBS Group AG now owns 32,815 shares of the construction company’s stock valued at $4,698,000 after acquiring an additional 13,165 shares during the last quarter. Legal & General Group Plc lifted its position in Watsco by 16.1% during the second quarter. Legal & General Group Plc now owns 30,746 shares of the construction company’s stock valued at $4,741,000 after acquiring an additional 4,253 shares during the last quarter. Advisor Group Inc. lifted its position in Watsco by 132.4% during the second quarter. Advisor Group Inc. now owns 1,706 shares of the construction company’s stock valued at $263,000 after acquiring an additional 972 shares during the last quarter. Bank of Montreal Can lifted its position in Watsco by 0.8% during the second quarter. Bank of Montreal Can now owns 2,867 shares of the construction company’s stock valued at $442,000 after acquiring an additional 22 shares during the last quarter. Finally, Point72 Asset Management L.P. purchased a new stake in Watsco during the first quarter valued at approximately $10,796,000. 81.30% of the stock is owned by institutional investors.

Watsco Company Profile

Watsco, Inc is a distributor of air conditioning, heating and refrigeration equipment, and related parts and supplies (HVAC/R) in the HVAC/R distribution industry in North America. As of December 31, 2016, the Company sold a range of non-equipment products, representing more than 300,000 stock keeping units, including parts, ductwork, air movement products, insulation, tools, installation supplies, thermostats and air quality products.

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Earnings History and Estimates for Watsco (NYSE:WSO)

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