Watsco (NYSE:WSO) Issues Earnings Results, Misses Expectations By $0.21 EPS

Watsco (NYSE:WSO) issued its earnings results on Tuesday. The construction company reported $4.49 earnings per share for the quarter, missing analysts’ consensus estimates of $4.70 by ($0.21), Briefing.com reports. The business had revenue of $2.10 billion for the quarter, compared to the consensus estimate of $2.19 billion. Watsco had a return on equity of 19.26% and a net margin of 7.03%. The company’s quarterly revenue was up 5.0% on a year-over-year basis. During the same quarter in the previous year, the business posted $4.42 earnings per share.

Watsco Stock Up 1.6 %

Shares of NYSE WSO traded up $7.90 during mid-day trading on Wednesday, reaching $489.04. The company had a trading volume of 221,389 shares, compared to its average volume of 317,455. The company has a market capitalization of $19.71 billion, a price-to-earnings ratio of 37.53 and a beta of 0.88. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.31 and a current ratio of 2.92. Watsco has a 12-month low of $337.58 and a 12-month high of $520.41. The stock has a fifty day moving average of $481.99 and a two-hundred day moving average of $440.95.

Watsco Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 31st. Shareholders of record on Tuesday, July 16th will be paid a dividend of $2.70 per share. The ex-dividend date of this dividend is Tuesday, July 16th. This represents a $10.80 annualized dividend and a yield of 2.21%. Watsco’s dividend payout ratio (DPR) is presently 83.08%.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the company. JPMorgan Chase & Co. raised their price objective on Watsco from $420.00 to $425.00 and gave the stock a “neutral” rating in a research note on Wednesday. Stephens reaffirmed an “overweight” rating and set a $500.00 target price on shares of Watsco in a report on Thursday, April 25th. Finally, Robert W. Baird lifted their price target on Watsco from $460.00 to $522.00 and gave the stock an “outperform” rating in a research note on Wednesday. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and three have assigned a buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $433.71.

Insider Activity

In related news, EVP Barry S. Logan sold 774 shares of the firm’s stock in a transaction that occurred on Friday, May 10th. The stock was sold at an average price of $473.85, for a total value of $366,759.90. Following the transaction, the executive vice president now directly owns 1,770 shares of the company’s stock, valued at approximately $838,714.50. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. In related news, EVP Barry S. Logan sold 774 shares of Watsco stock in a transaction dated Friday, May 10th. The stock was sold at an average price of $473.85, for a total transaction of $366,759.90. Following the sale, the executive vice president now directly owns 1,770 shares of the company’s stock, valued at $838,714.50. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director John Alexander Macdonald sold 5,334 shares of the company’s stock in a transaction that occurred on Thursday, May 9th. The shares were sold at an average price of $466.41, for a total value of $2,487,830.94. The disclosure for this sale can be found here. 12.86% of the stock is owned by insiders.

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.