The market expects Watsco (WSO - Free Report) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 29. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis heating and cooling company is expected to post quarterly earnings of $4.40 per share in its upcoming report, which represents a year-over-year change of -2.7%.
Revenues are expected to be $2.17 billion, up 5.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.87% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Watsco?For Watsco, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +8.00%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Watsco will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Watsco would post earnings of $1.73 per share when it actually produced earnings of $1.87, delivering a surprise of +8.09%.
Over the last four quarters, the company has beaten consensus EPS estimates just once.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Watsco appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAmong the stocks in the Zacks Manufacturing - General Industrial industry, Illinois Tool Works (ITW - Free Report) , is soon expected to post earnings of $2.8 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +8.5%. This quarter's revenue is expected to be $4.18 billion, up 3.2% from the year-ago quarter.
The consensus EPS estimate for Illinois Tool Works has been revised 0.4% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +0.31%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Illinois Tool Works will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
MIAMI, July 16, 2026 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) announced today that it has scheduled a conference call to discuss its 2026 second quarter results on Wednesday, July 29, 2026 at 10:00 a.m. (EDT). Prepared remarks regarding the results will be followed by a question-and-answer session with the senior management team.
The conference call will be webcast by CCBN's StreetEvents and can be found under the link highlighted on our website at www.watsco.com. The earnings results will be released before the market opens on July 29, 2026. A replay of the conference call will be available on our website.
Investors and analysts are encouraged to pre-register for the conference call by using the link below. Participants who pre-register will be given a unique PIN to gain immediate access to the call. Pre-registration may be completed at any time up to the call start time.
To pre-register, go to: https://dpregister.com/sreg/10210662/1047dd5bd98
Participants that would like to join, but have not pre-registered, can do so by dialing (844) 883-3908 within the United States or (412) 317-9254 internationally and asking for the “Watsco” call. Please call five to ten minutes prior to the scheduled start time as the number of telephone connections is limited.
Watsco is the largest distributor in the highly fragmented North American HVAC/R market. Watsco’s solid financial position and culture of innovation has enabled investments in long-term growth, including the Company’s industry-leading technology platforms. Today, approximately 74,000 contractors, installers and technicians engage digitally with the Company, resulting in improved growth and lower attrition. The Company is now advancing AI-driven initiatives to leverage its extensive data assets to enhance the customer experience and improve efficiencies. These investments position Watsco to capture market share as contractors increasingly adopt digital tools and incorporate data-driven solutions in their businesses.
Barry S. Logan
Executive Vice President
(305) 714-4102
e-mail: [email protected]
www.watsco.com
MIAMI, July 01, 2026 (GLOBE NEWSWIRE) -- Watsco, Inc.’s (NYSE: WSO) Board of Directors has declared a regular quarterly cash dividend of $3.30 on each outstanding share of its Common and Class B common stock payable on July 31, 2026 to shareholders of record at the close of business on July 16, 2026.
Watsco has paid dividends to shareholders for 52 consecutive years. The Company’s philosophy is to share cash flow through dividends while keeping a conservative balance sheet with continued capacity to build its distribution network. Future changes in dividends will be considered in light of investment opportunities, cash flow, general economic conditions, and Watsco’s overall financial condition.
About Watsco
Watsco is the largest distributor in the highly fragmented North American HVAC/R market. Watsco’s solid financial position and culture of innovation has enabled investments in long-term growth, including the Company’s industry-leading technology platforms. Today, approximately 74,000 contractors, installers and technicians engage digitally with the Company, resulting in improved growth and lower attrition. The Company is now advancing AI-driven initiatives to leverage its extensive data assets to enhance the customer experience and improve efficiencies. These investments position Watsco to capture market share as contractors increasingly adopt digital tools and incorporate data-driven solutions in their businesses.
This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results and the related assumptions underlying our expected results. These forward-looking statements are distinguished by use of words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” or “intend,” the negative of these terms, and similar references to future periods. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive market, new housing starts and completions, capital spending in commercial construction, consumer spending and debt levels, regulatory and other factors, including, without limitation, the effects of supplier concentration, competitive conditions within Watsco’s industry, the seasonal nature of sales of Watsco’s products, the ability of the Company to expand its business, insurance coverage risks and final GAAP adjustments. Detailed information about these factors and additional important factors can be found in the documents that Watsco files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. Watsco assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except as required by applicable law.
Barry S. Logan
Executive Vice President
(305) 714-4102
e-mail: [email protected]
A month has gone by since the last earnings report for Watsco (WSO - Free Report) . Shares have lost about 9.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Watsco due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Watsco Q4 Earnings & Revenues Lag Estimates, Gross Margin Up Y/YWatsco reported lower-than-expected fourth-quarter 2025 results with earnings and revenues missing the Zacks Consensus Estimate and decreasing year over year.
The quarterly results reflect reduced demand volumes for HVAC equipment and products, with the return of seasonality pulling back the numbers further. Also, a weaker consumer spending environment and a slowdown in housing activity are concerning.
The bottom line was adversely impacted by reduced leverage from the top line, despite several pricing optimizations and reduced expenses.
Inside WSO’s Q4 HeadlinesThe company reported earnings of $1.68 per share, missing the Zacks Consensus Estimate of $1.94 by 13.4% and declining 29.1% year over year from $2.37 per share.
Revenues of $1.58 billion also missed the consensus mark of $1.61 billion by 1.9% and tumbled year over year by 10%.
Segment-wise, HVAC equipment (67% of sales) fell 13%, and other HVAC products (29% of sales) declined 4%, somewhat offset by 5% growth in commercial refrigeration sales (4% of sales).
Watsco’s Margins and ProfitabilityGross profit of $428.4 million was down from $468.1 million reported in the year-ago quarter. However, the gross margin expanded 40 basis points to 27.1%, driven by effective pricing and product mix optimization.
Operating income declined 25.5% year over year to $101.5 million, with operating margin contracting 140 bps to 6.4%.
Selling, general and administrative expenses inched down 1.7% to $332.6 million.
WSO’s 2025 HighlightsDuring the year, revenues declined year over year by 5% to $7.24 billion, with earnings per share reducing 7.9% to $12.25.
Gross profit decreased 1% to $2 billion, but gross margin expanded 120 bps to 28%. Operating income also declined 8% to $720 million from 2024, with the operating margin of 10% contracting 30 bps.
WSO’s Balance Sheet and LiquidityAs of 2025, Watsco had $433.3 million in cash and cash equivalents, down from $526.3 million at the end of 2024. As of Dec. 31, 2025, net cash provided by operating activities was down to $569.6 million from $773.1 million as of Dec. 31, 2024. The company reported no long-term debt, underscoring its conservative capital structure.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -7.23% due to these changes.
VGM ScoresAt this time, Watsco has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Watsco has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
I advocate capitalizing on current market dislocations, emphasizing that waiting for clarity often means missing the best opportunities. Despite macro risks like potential stagflation, I see a regime shift favoring high-quality value stocks with pricing power and broadening growth. I highlight Carrier Global, Amazon, Union Pacific, and TransDigm as compelling buys due to strong secular growth and attractive valuations.
Wealth Enhancement Advisory Services LLC trimmed its stake in shares of Watsco, Inc. (NYSE:WSO – Free Report) by 13.0% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 13,915 shares of the construction company’s stock after selling 2,071 shares during the quarter. Wealth Enhancement Advisory Services LLC’s holdings in Watsco were worth $4,970,000 at the end of the most recent quarter.
Several other large investors also recently bought and sold shares of WSO. Empowered Funds LLC boosted its stake in shares of Watsco by 4.1% in the 1st quarter. Empowered Funds LLC now owns 5,927 shares of the construction company’s stock valued at $3,013,000 after buying an additional 232 shares during the period. American Century Companies Inc. increased its stake in shares of Watsco by 17.6% during the second quarter. American Century Companies Inc. now owns 18,711 shares of the construction company’s stock worth $8,263,000 after buying an additional 2,803 shares during the period. Prudential Financial Inc. increased its stake in shares of Watsco by 5.3% during the second quarter. Prudential Financial Inc. now owns 3,837 shares of the construction company’s stock worth $1,694,000 after buying an additional 194 shares during the period. Steward Partners Investment Advisory LLC raised its holdings in Watsco by 2.7% in the second quarter. Steward Partners Investment Advisory LLC now owns 2,544 shares of the construction company’s stock valued at $1,123,000 after acquiring an additional 68 shares in the last quarter. Finally, Korea Investment CORP raised its holdings in Watsco by 12.5% in the second quarter. Korea Investment CORP now owns 25,625 shares of the construction company’s stock valued at $11,317,000 after acquiring an additional 2,840 shares in the last quarter. Hedge funds and other institutional investors own 89.71% of the company’s stock.
Watsco Stock Down 0.3% Shares of WSO opened at $346.29 on Monday. The company has a market capitalization of $14.06 billion, a price-to-earnings ratio of 28.60 and a beta of 1.03. Watsco, Inc. has a 52-week low of $323.05 and a 52-week high of $521.09. The stock has a 50 day moving average price of $394.13 and a 200 day moving average price of $374.07.
Watsco (NYSE:WSO – Get Free Report) last released its quarterly earnings data on Tuesday, February 17th. The construction company reported $1.68 earnings per share for the quarter, missing analysts’ consensus estimates of $1.94 by ($0.26). The company had revenue of $1.58 billion for the quarter, compared to analyst estimates of $1.62 billion. Watsco had a return on equity of 15.49% and a net margin of 6.87%.The firm’s revenue for the quarter was down 9.9% compared to the same quarter last year. During the same period in the previous year, the business posted $2.37 EPS. On average, equities analysts anticipate that Watsco, Inc. will post 14.62 EPS for the current fiscal year.
Watsco Announces Dividend The business also recently declared a quarterly dividend, which was paid on Friday, January 30th. Investors of record on Friday, January 16th were paid a dividend of $3.00 per share. This represents a $12.00 annualized dividend and a yield of 3.5%. The ex-dividend date was Friday, January 16th. Watsco’s dividend payout ratio (DPR) is currently 99.09%.
Wall Street Analyst Weigh In Several research firms have commented on WSO. UBS Group began coverage on shares of Watsco in a report on Monday, January 5th. They set a “neutral” rating and a $370.00 price target for the company. JPMorgan Chase & Co. raised their price objective on shares of Watsco from $370.00 to $400.00 and gave the company a “neutral” rating in a report on Thursday, February 19th. Mizuho set a $425.00 price objective on shares of Watsco in a research report on Wednesday, February 18th. Morgan Stanley lowered their target price on shares of Watsco from $460.00 to $370.00 and set an “equal weight” rating for the company in a research note on Wednesday, January 14th. Finally, Zacks Research raised Watsco from a “strong sell” rating to a “hold” rating in a report on Wednesday, February 25th. One equities research analyst has rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $409.00.
Check Out Our Latest Report on Watsco
About Watsco (Free Report)
Watsco, Inc is the largest distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment, parts and supplies in the United States. Headquartered in Miami, Florida, the company operates a network of more than 600 branches across the continental U.S., Canada and Puerto Rico. Watsco serves residential and commercial contractors by providing essential components for climate control systems, including air conditioners, furnaces, heat pumps, coils, refrigerants, controls and electrical and piping supplies.
Founded in 1947, Watsco has grown from a single regional distributor into an industry leader through a combination of organic expansion, acquisitions and strategic partnerships with original equipment manufacturers such as Carrier, Trane, Goodman and Lennox.
Featured Articles Five stocks we like better than Watsco Want to see what other hedge funds are holding WSO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Watsco, Inc. (NYSE:WSO – Free Report).
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.
MIAMI, April 01, 2026 (GLOBE NEWSWIRE) -- Watsco, Inc.’s (NYSE: WSO) Board of Directors has declared a regular quarterly cash dividend of $3.30 on each outstanding share of its Common and Class B common stock payable on April 30, 2026 to shareholders of record at the close of business on April 16, 2026. This marks a 10% increase to an annual rate of $13.20 per share.
Albert H. Nahmad, Watsco’s Chairman & CEO stated: “We are pleased to increase dividends to shareholders, reflecting our continued confidence in our business, which is fundamentally supported by our strong balance sheet.”
Watsco has paid dividends to shareholders for 52 consecutive years. The Company’s philosophy is to share cash flow through dividends while maintaining a conservative balance sheet with continued capacity to build its distribution network. Future changes in dividends are considered in light of investment opportunities, cash flow, general economic conditions and Watsco’s overall financial condition.
About Watsco
Watsco is the largest distributor in the highly-fragmented North American HVAC/R market. Since entering distribution in 1989, Watsco has achieved a 17% compounded annual total-shareholder return through a combination of organic growth and the acquisition of more than 70 market-leading businesses.
Watsco’s solid financial position and culture of innovation has enabled investments in long-term growth, including the Company’s industry-leading technology platforms. Today, approximately 73,000 contractors, installers and technicians engage digitally with the Company, resulting in improved growth and lower attrition. The Company is now advancing AI-driven initiatives to leverage its extensive data assets to enhance the customer experience and improve efficiencies. These investments position Watsco to capture market share as contractors increasingly adopt digital tools and incorporate data-driven solutions in their businesses.
This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results and the related assumptions underlying our expected results. These forward-looking statements are distinguished by use of words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” or “intend,” the negative of these terms, and similar references to future periods. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive market, new housing starts and completions, capital spending in commercial construction, consumer spending and debt levels, regulatory and other factors, including, without limitation, the effects of supplier concentration, competitive conditions within Watsco’s industry, the seasonal nature of sales of Watsco’s products, the ability of the Company to expand its business, insurance coverage risks and final GAAP adjustments.
Detailed information about these factors and additional important factors can be found in the documents that Watsco files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. Watsco assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except as required by applicable law.
Barry S. Logan
Executive Vice President
(305) 714-4102
e-mail: [email protected]
Shares of Watsco, Inc. (NYSE:WSO – Get Free Report) have earned a consensus recommendation of “Hold” from the nine analysts that are covering the company, Marketbeat Ratings reports. Eight equities research analysts have rated the stock with a hold recommendation and one has assigned a buy recommendation to the company. The average 1-year target price among analysts that have covered the stock in the last year is $409.00.
A number of research firms have commented on WSO. Morgan Stanley reduced their price objective on Watsco from $460.00 to $370.00 and set an “equal weight” rating on the stock in a research note on Wednesday, January 14th. Zacks Research raised Watsco from a “strong sell” rating to a “hold” rating in a report on Wednesday, February 25th. JPMorgan Chase & Co. upped their price target on shares of Watsco from $370.00 to $400.00 and gave the stock a “neutral” rating in a research report on Thursday, February 19th. KeyCorp reissued a “sector weight” rating on shares of Watsco in a report on Friday, December 12th. Finally, Wolfe Research set a $349.00 price objective on shares of Watsco in a research report on Tuesday, December 9th.
Check Out Our Latest Analysis on WSO
Watsco Trading Down 1.5% NYSE WSO opened at $370.31 on Friday. Watsco has a 1-year low of $323.05 and a 1-year high of $518.00. The company has a 50 day moving average of $392.64 and a 200-day moving average of $373.60. The firm has a market cap of $15.03 billion, a price-to-earnings ratio of 30.58 and a beta of 1.06.
Watsco (NYSE:WSO – Get Free Report) last announced its earnings results on Tuesday, February 17th. The construction company reported $1.68 EPS for the quarter, missing the consensus estimate of $1.94 by ($0.26). Watsco had a return on equity of 15.49% and a net margin of 6.87%.The business had revenue of $1.58 billion during the quarter, compared to analyst estimates of $1.62 billion. During the same period in the previous year, the firm earned $2.37 earnings per share. The firm’s revenue was down 9.9% compared to the same quarter last year. On average, analysts forecast that Watsco will post 14.62 earnings per share for the current year.
Institutional Trading of Watsco Hedge funds and other institutional investors have recently modified their holdings of the stock. Truist Financial Corp increased its position in Watsco by 89.2% in the third quarter. Truist Financial Corp now owns 37,808 shares of the construction company’s stock worth $15,286,000 after purchasing an additional 17,820 shares during the period. Donaldson Capital Management LLC raised its holdings in Watsco by 47.7% during the 3rd quarter. Donaldson Capital Management LLC now owns 124,789 shares of the construction company’s stock worth $50,452,000 after purchasing an additional 40,326 shares during the last quarter. Federated Hermes Inc. lifted its position in Watsco by 577.9% during the 3rd quarter. Federated Hermes Inc. now owns 19,957 shares of the construction company’s stock valued at $8,069,000 after purchasing an additional 17,013 shares during the period. Allianz Asset Management GmbH boosted its stake in shares of Watsco by 237.5% in the 3rd quarter. Allianz Asset Management GmbH now owns 5,629 shares of the construction company’s stock valued at $2,276,000 after purchasing an additional 3,961 shares during the last quarter. Finally, Atlantic Union Bankshares Corp bought a new position in shares of Watsco in the 3rd quarter valued at about $1,392,000. Institutional investors and hedge funds own 89.71% of the company’s stock.
About Watsco (Get Free Report)
Watsco, Inc is the largest distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment, parts and supplies in the United States. Headquartered in Miami, Florida, the company operates a network of more than 600 branches across the continental U.S., Canada and Puerto Rico. Watsco serves residential and commercial contractors by providing essential components for climate control systems, including air conditioners, furnaces, heat pumps, coils, refrigerants, controls and electrical and piping supplies.
Founded in 1947, Watsco has grown from a single regional distributor into an industry leader through a combination of organic expansion, acquisitions and strategic partnerships with original equipment manufacturers such as Carrier, Trane, Goodman and Lennox.
Featured Articles Five stocks we like better than Watsco
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.
« PREVIOUS HEADLINEAercap Holdings N.V. (NYSE:AER) Given Consensus Rating of “Moderate Buy” by Analysts
NEXT HEADLINE »Sotera Health Company (NASDAQ:SHC) Receives Average Recommendation of “Moderate Buy” from Analysts
MIAMI, April 10, 2026 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) announced today that it has scheduled a conference call to discuss its 2026 first quarter results on Tuesday, April 28, 2026 at 10:00 a.m. (EDT). Prepared remarks regarding the results will be followed by a question-and-answer session with the senior management team.
The conference call will be webcast by CCBN's StreetEvents and can be found under the link highlighted on our website at www.watsco.com. The earnings results will be released before the market opens on April 28, 2026. A replay of the conference call will be available on our website.
Investors and analysts are encouraged to pre-register for the conference call by using the link below. Participants who pre-register will be given a unique PIN to gain immediate access to the call. Pre-registration may be completed at any time up to the call start time.
To pre-register, go to: https://dpregister.com/sreg/10208363/103ce2f6754
Participants that would like to join, but have not pre-registered, can do so by dialing (844) 883-3908 within the United States or (412) 317-9254 internationally and asking for the “Watsco” call. Please call five to ten minutes prior to the scheduled start time as the number of telephone connections is limited.
Watsco is the largest distributor in the highly-fragmented North American HVAC/R market. Since entering distribution in 1989, Watsco has achieved a 17% compounded annual total-shareholder return through a combination of organic growth and the acquisition of more than 70 market-leading businesses.
Watsco’s solid financial position and culture of innovation has enabled investments in long-term growth, including the Company’s industry-leading technology platforms. Today, approximately 73,000 contractors, installers and technicians engage digitally with the Company, resulting in improved growth and lower attrition. The Company is now advancing AI-driven initiatives to leverage its extensive data assets to enhance the customer experience and improve efficiencies. These investments position Watsco to capture market share as contractors increasingly adopt digital tools and incorporate data-driven solutions in their businesses.
Barry S. Logan
Executive Vice President
(305) 714-4102
e-mail: [email protected]
Wall Street expects a year-over-year decline in earnings on lower revenues when Watsco (WSO - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on April 28, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis heating and cooling company is expected to post quarterly earnings of $1.73 per share in its upcoming report, which represents a year-over-year change of -10.4%.
Revenues are expected to be $1.5 billion, down 1.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.03% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Watsco?For Watsco, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.62%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Watsco will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Watsco would post earnings of $1.94 per share when it actually produced earnings of $1.68, delivering a surprise of -13.40%.
The company has not been able to beat consensus EPS estimates in any of the last four quarters.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Watsco doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerDover Corporation (DOV - Free Report) , another stock in the Zacks Manufacturing - General Industrial industry, is expected to report earnings per share of $2.27 for the quarter ended March 2026. This estimate points to a year-over-year change of +10.7%. Revenues for the quarter are expected to be $2.01 billion, up 7.8% from the year-ago quarter.
The consensus EPS estimate for Dover has been revised 0.2% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.55%.
This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Dover will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
AEGON ASSET MANAGEMENT UK Plc trimmed its position in shares of Watsco, Inc. (NYSE:WSO – Free Report) by 5.9% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 114,004 shares of the construction company’s stock after selling 7,187 shares during the quarter. AEGON ASSET MANAGEMENT UK Plc owned 0.28% of Watsco worth $38,440,000 at the end of the most recent reporting period.
A number of other hedge funds and other institutional investors also recently made changes to their positions in WSO. Capital International Investors lifted its position in Watsco by 741.4% in the 3rd quarter. Capital International Investors now owns 2,285,895 shares of the construction company’s stock valued at $924,187,000 after acquiring an additional 2,014,233 shares in the last quarter. State Street Corp lifted its position in Watsco by 1.4% in the 3rd quarter. State Street Corp now owns 1,238,121 shares of the construction company’s stock valued at $500,572,000 after acquiring an additional 16,595 shares in the last quarter. M&T Bank Corp lifted its position in Watsco by 60,779.4% in the 4th quarter. M&T Bank Corp now owns 599,662 shares of the construction company’s stock valued at $202,056,000 after acquiring an additional 598,677 shares in the last quarter. DAVENPORT & Co LLC lifted its position in Watsco by 31.8% in the 4th quarter. DAVENPORT & Co LLC now owns 470,177 shares of the construction company’s stock valued at $159,293,000 after acquiring an additional 113,333 shares in the last quarter. Finally, Hamlin Capital Management LLC lifted its position in Watsco by 13.3% in the 3rd quarter. Hamlin Capital Management LLC now owns 405,480 shares of the construction company’s stock valued at $163,936,000 after acquiring an additional 47,643 shares in the last quarter. 89.71% of the stock is owned by institutional investors.
Analyst Upgrades and Downgrades WSO has been the topic of several research reports. JPMorgan Chase & Co. boosted their price objective on shares of Watsco from $370.00 to $400.00 and gave the company a “neutral” rating in a research report on Thursday, February 19th. UBS Group initiated coverage on shares of Watsco in a research report on Monday, January 5th. They issued a “neutral” rating and a $370.00 price objective on the stock. Zacks Research raised shares of Watsco from a “strong sell” rating to a “hold” rating in a research report on Wednesday, February 25th. Mizuho set a $425.00 price objective on shares of Watsco in a research report on Wednesday, February 18th. Finally, Morgan Stanley cut their price objective on shares of Watsco from $460.00 to $370.00 and set an “equal weight” rating on the stock in a research report on Wednesday, January 14th. Eight analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $382.80.
Get Our Latest Stock Report on WSO
Watsco Price Performance Watsco stock opened at $440.78 on Friday. The firm has a market capitalization of $17.90 billion, a PE ratio of 36.40 and a beta of 1.06. The company’s 50-day moving average is $396.42 and its 200-day moving average is $375.24. Watsco, Inc. has a fifty-two week low of $323.05 and a fifty-two week high of $496.25.
Watsco (NYSE:WSO – Get Free Report) last released its quarterly earnings data on Tuesday, February 17th. The construction company reported $1.68 earnings per share for the quarter, missing the consensus estimate of $1.94 by ($0.26). The firm had revenue of $1.58 billion for the quarter, compared to analyst estimates of $1.62 billion. Watsco had a return on equity of 15.49% and a net margin of 6.87%.The firm’s revenue for the quarter was down 9.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.37 earnings per share. As a group, analysts expect that Watsco, Inc. will post 12.53 EPS for the current year.
Watsco Increases Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, April 30th. Investors of record on Thursday, April 16th will be paid a $3.30 dividend. This is an increase from Watsco’s previous quarterly dividend of $3.00. The ex-dividend date is Thursday, April 16th. This represents a $13.20 dividend on an annualized basis and a yield of 3.0%. Watsco’s dividend payout ratio (DPR) is currently 109.00%.
Watsco Profile (Free Report)
Watsco, Inc is the largest distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment, parts and supplies in the United States. Headquartered in Miami, Florida, the company operates a network of more than 600 branches across the continental U.S., Canada and Puerto Rico. Watsco serves residential and commercial contractors by providing essential components for climate control systems, including air conditioners, furnaces, heat pumps, coils, refrigerants, controls and electrical and piping supplies.
Founded in 1947, Watsco has grown from a single regional distributor into an industry leader through a combination of organic expansion, acquisitions and strategic partnerships with original equipment manufacturers such as Carrier, Trane, Goodman and Lennox.
See Also Five stocks we like better than Watsco Want to see what other hedge funds are holding WSO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Watsco, Inc. (NYSE:WSO – Free Report).
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.
« PREVIOUS HEADLINEAEGON ASSET MANAGEMENT UK Plc Buys 60,918 Shares of Palantir Technologies Inc. $PLTR
NEXT HEADLINE »Financial Survey: Meridian Bank (NASDAQ:MRBK) vs. WCF Bancorp (OTCMKTS:WCFB)
$230 Million Distributor Adds 25 Locations in Core Sunbelt Markets
Buy-and-Build Opportunity Adds Scale and Leverages Long-Term Technology Advantage
MIAMI, April 28, 2026 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) announced today the signing of a definitive agreement to acquire Jackson Supply Company.
Founded in 1972, Jackson Supply Company is one of the Sunbelt’s largest HVAC distributors with sales of $230 million in 2025. The Company serves approximately 5,000 customers from 25 locations in high-growth Sunbelt markets such as Texas, Louisiana, Tennessee, Alabama, Mississippi, Oklahoma and Arizona. Its diversified, balanced product offering includes Goodman and Amana brand HVAC equipment manufactured by Daikin Comfort Technologies North America, Inc. along with a broad array of supplies, accessories, and parts sourced from approximately 200 vendors.
Jackson Supply will operate as an independent business and will continue to be led by its existing management team, under the leadership of Jim Durrett and Jennifer Ballsieper, in keeping with Watsco's long-standing approach of investing in great leadership teams and successful cultures. The transaction is expected to close in the second quarter and is subject to customary closing conditions and regulatory approvals.
Albert H. Nahmad, Watsco’s Chairman and CEO said: “Jackson Supply is one of the most iconic, entrepreneurial businesses in our industry. Jim Durret and his next generation team of leaders will continue to guide the Company in their next chapter of growth, while sustaining their name, identity and unique culture. We look forward to supporting their growth with our capital, technology, industry relationships, and more to build on their impressive track record of success. We are pleased to become part of the Jackson Supply family.”
Jim Durrett, Chairman of Jackson Supply, commented: “We are proud and excited to join the Watsco family. Partnering with Watsco was the logical choice – Jackson Supply will retain its identity, culture and the unique approach to serving HVAC contractors that has made us so successful. We have ambitious growth plans and are ready to capitalize on the opportunities ahead. We also look forward to adopting Watsco’s innovative technology platforms to support our customers, complementing the customer focus that is at the heart of Jackson Supply’s culture.”
Watsco’s Buy and Build Growth Strategy
Watsco has acquired 72 businesses since 1989, most of which were successful, multi-generation, family-owned businesses. Watsco’s buy and build strategy can be summarized as follows:
– Identify and partner with great businesses focused on the HVAC/R industry
– Support their leadership team and honor the culture and legacies they created
– Ask for aggressive growth plans and help leadership achieve their ambitions
– Motivate teams and reaffirm an ownership culture with long-term equity
– Deploy the industry’s most comprehensive suite of customer-focused technologies
– Solicit and collaborate on big ideas to foster a spirit of innovation and growth
– Build a stronger Watsco because of our association with these companies
Watsco is actively seeking additional opportunities to invest and grow through acquisitions to expand our relatively low market share of the estimated $74 billion North American distribution marketplace for HVAC/R products.
About Watsco
Watsco is the largest distributor in the highly-fragmented North American HVAC/R market. Watsco’s solid financial position and culture of innovation has enabled investments in long-term growth, including the Company’s industry-leading technology platforms. Today, approximately 74,000 contractors, installers and technicians engage digitally with the Company, resulting in improved growth and lower attrition. The Company is now advancing AI-driven initiatives to leverage its extensive data assets to enhance the customer experience and improve efficiencies. These investments position Watsco to capture market share as contractors increasingly adopt digital tools and incorporate data-driven solutions in their businesses.
This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results and the related assumptions underlying our expected results. These forward-looking statements are distinguished by use of words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” or “intend,” the negative of these terms, and similar references to future periods. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive market, new housing starts and completions, capital spending in commercial construction, consumer spending and debt levels, regulatory and other factors, including, without limitation, the effects of supplier concentration, competitive conditions within Watsco’s industry, the seasonal nature of sales of Watsco’s products, the ability of the Company to expand its business, insurance coverage risks and final GAAP adjustments. Detailed information about these factors and additional important factors can be found in the documents that Watsco files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. Watsco assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except as required by applicable law.
Contact
Barry S. Logan
Executive Vice President
(305) 714-4102
e-mail: [email protected]
MIAMI, April 28, 2026 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) today announced its operating results for the first quarter ended March 31, 2026.
Watsco also announced that it has entered into an agreement to acquire Jackson Supply Company, one of the largest Sunbelt HVAC distributors, with annual sales of $230 million. The transaction is expected to close in the second quarter of 2026, pending completion of customary closing conditions. Following closing, Jackson Supply will continue to be led by its existing management team, in keeping with Watsco's long-standing approach of investing in great leaders and successful cultures.
Watsco is the largest distributor in the highly fragmented North American HVAC market. Since entering distribution in 1989, Watsco has achieved an 18% compounded annual total shareholder return through a combination of organic growth and the acquisition of more than 70 market-leading businesses.
The Company maintains a solid financial position with $593 million in cash and short-term cash investments and no debt, enabling sustained investments in growth, including the Company’s industry-leading technologies. Approximately 74,000 contractors, installers and technicians engage digitally with the Company, which contributes to customer growth and reduced attrition. AI-driven initiatives have also been launched to further enhance the customer experience and improve efficiency. These investments are especially critical as contractors increase their adoption of digital, data-driven solutions in their businesses.
Business Trends
Market conditions gradually improved during the first quarter as the transition to A2L refrigerant products continued to mature. The A2L transition began during early 2025 and impacted approximately 55% of products sold (primarily domestic residential and light-commercial HVAC equipment) across 650 locations. In response, Watsco invested in inventory, people, technology, logistics, training and more to support its customers during the transition. The Company expects a more conventional industry environment and better prospects for growth as 2026 unfolds, with further potential to optimize inventory and improve operating efficiency in the long term.
First Quarter Performance
Revenues were flat at $1.53 billionGross profit was flat at $428 million (gross profit margin of 27.9% versus 28.1% last year)SG&A was also flat and consistent as a percentage of salesOperating income decreased 2% to $110 million (operating margin of 7.2% versus 7.3% last year)Earnings per share decreased 3% to $1.87Cash used in operations was $19 million versus $178 million last year, a $159 million improvement Sales trends
2% increase in overall sales in U.S. markets versus 11% sales decline internationally1% decrease in HVAC equipment (65% of sales)4% increase in sales of other HVAC products (30% of sales)11% increase in commercial refrigeration products (5% of sales) First quarter 2026 results reflect a 9% increase in average selling price for HVAC equipment from a higher sales mix of A2L products and higher-efficiency HVAC equipment, offset by lower unit volumes. SG&A expenses were flat, reflecting improved operating efficiency and a simpler operating environment compared to last year. Albert H. Nahmad, Chairman and CEO said: “We are extremely honored to welcome Jim Durrett and the entire Jackson Supply team to the Watsco family. Our relationship dates back more than 20 years, and we are grateful for the relationship and the commitment to entrust us with the next chapter of its 50-year legacy. This transaction adds meaningful scale and diversification to Watsco’s core Sunbelt markets. The Jackson Supply team possesses a strong track record of organic growth and an entrepreneurial spirit that closely aligns with our own. We look forward to learning from them and supporting their ambitious growth plans for years to come.”
Mr. Nahmad added: “Our markets are experiencing improved stability as we approach the Summer selling season for our products. Our teams are collaborating well with our contractor customers, who also have a more simplified, focused business environment in which to offer and sell their products and services. Our technology, our seasoned leadership team, our capital and our deep relationships in this wonderful industry serve us well and position us favorably to grow share.”
It is important to note that the first and fourth quarters of each calendar year are highly seasonal due to the timing of the replacement of HVAC systems and results are typically strongest in the second and third quarters. The Company’s first quarter financial results are disproportionately affected by seasonality.
Innovation and Strategic Technology Initiatives
Watsco pioneered the industry’s most comprehensive digital ecosystem. The Company has invested more than $250 million in technology over the last five years (an annual current run rate of approximately $67 million). Highlights of Watsco’s customer-facing platforms include:
Watsco’s HVAC Pro+ Mobile Apps and E-Commerce platform have transformed the customer-experience by providing contractors with a seamless digital experience, including sourcing products, accessing technical help, real-time inventory, pricing, product information and more. These tools empower 24/7 self-service that benefit from intelligent search, dynamic reordering, technical knowledge and product recommendations. The result is a frictionless buying journey, increased convenience and higher customer satisfaction, which we believe drives greater loyalty and repeat business with lower costs to serve. First quarter highlights include:First quarter E-commerce sales grew 16% and were approximately $2.6 billion for the 12 months ended March 31, 2026 (36% of sales), with outperforming regions exceeding 60%. Order trends and the rate of improvement in customer attrition remain consistent year-over-year.
Total authenticated users of our HVAC Pro+ Mobile Apps increased to approximately 74,000.The addition of more than 10,000 new SKUs related to the A2L product launch, including all relevant data concerning features, dimensions, capacities, consumer literature and technical information, including bills of material, warranty information, regulatory match-ups and more. OnCallAir® is Watsco’s digital sales platform enabling contractors to engage, present and quote solutions to homeowners. The gross merchandise value (GMV) of products sold through OnCallAir® was approximately $394 million (a 20% increase) for the first quarter of 2026. For the twelve months ended March 31, 2026, contractors presented unique quotes to approximately 336,000 households and generated $1.9 billion GMV, a 20% increase versus the comparative period ended March 31, 2025.
A.J. Nahmad, Watsco’s President, added: “Our core technology platforms have continued to scale among customers, and we continue to innovate new ways to delight our customers. Last year, we set in motion incremental investments in new platforms that we believe will enhance growth with existing customers, attract new customers and boost profitability in the years ahead. These initiatives should provide great potential and enhance Watsco’s already-sizeable competitive advantage in the fragmented HVAC/R industry.”
Cash Flow, Dividends, Financial Strength and Liquidity
Cash flow use was $19 million for the first quarter of 2026 compared to a cash use of $178 million in the same period in 2025, reflecting a $159 million decrease in working capital. The Company expects more conventional working capital trends going forward, providing the opportunity for better inventory turns and enhanced returns on invested capital.
In April 2026, the Company increased its annual cash dividend by 10% to $13.20 per share. Watsco has paid dividends to shareholders for 52 consecutive years. The Company’s philosophy is to share cash flow through dividends while maintaining a conservative balance sheet with continued capacity to build its distribution network. Future changes in dividends are considered in light of investment opportunities, cash flow, general economic conditions and Watsco’s overall financial condition.
The Company’s objective is to maintain a healthy balance sheet that provides low-cost capital to fund strategic investments in growth. Watsco’s strong financial position has been key to its ability to deliver sustained long-term returns, enabling investments regardless of macroeconomic or industry conditions. The Company’s stated goal is to generate annual operating cash flow in excess of net income consistent with its long-term track record.
Buy & Build Acquisition Strategy
Once completed, Jackson Supply will mark the 73rd independent distributor that has elected to join the Watsco family and will contribute to Watsco’s scale and, more importantly, to its community of leaders. Since 2019, Watsco has acquired 12 companies that today represent approximately $1.6 billion in annualized sales and 120 locations. Our “buy and build” strategy builds upon their long-standing legacies through investment in new locations, new products and by leveraging Watsco’s technology platforms. The North American distribution landscape remains highly fragmented with more than 2,100 independent HVAC distributors.
First Quarter Earnings Conference Call Information
Date and time: April 28, 2026 at 10:00 a.m. (EDT)
Webcast: http://investors.watsco.com (a replay will be available on the Company’s website)
Dial-in number: United States (844) 883-3908 / International (412) 317-9254
About Watsco
Watsco is the largest distributor in the highly fragmented North American HVAC/R market. Watsco’s solid financial position and culture of innovation has enabled investments in long-term growth, including the Company’s industry-leading technology platforms. Today, approximately 74,000 contractors, installers and technicians engage digitally with the Company, resulting in improved growth and lower attrition. The Company is now advancing AI-driven initiatives to leverage its extensive data assets to enhance the customer experience and improve efficiencies. These investments position Watsco to capture market share as contractors increasingly adopt digital tools and incorporate data-driven solutions in their businesses.
This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results and the related assumptions underlying our expected results. These forward-looking statements are distinguished by use of words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” or “intend,” the negative of these terms, and similar references to future periods. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive market, new housing starts and completions, capital spending in commercial construction, consumer spending and debt levels, regulatory and other factors, including, without limitation, the effects of supplier concentration, competitive conditions within Watsco’s industry, the seasonal nature of sales of Watsco’s products, the ability of the Company to expand its business, insurance coverage risks and final GAAP adjustments. Detailed information about these factors and additional important factors can be found in the documents that Watsco files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. Watsco assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except as required by applicable law.
WATSCO, INC.
Condensed Consolidated Results of Operations
(In thousands, except share and per share data)
(Unaudited) Quarters Ended March 31, 2026 2025 Revenues $1,533,010 $1,531,086 Cost of sales 1,105,455 1,101,463 Gross profit 427,555 429,623 Gross profit margin 27.9% 28.1%Selling, general and administrative expenses 322,851 322,581 Other income 5,480 5,146 Operating income 110,184 112,188 Operating margin 7.2% 7.3%Interest income, net 6,459 5,417 Income before income taxes 116,643 117,605 Income taxes 23,702 23,065 Net income 92,941 94,540 Less: net income attributable to non-controlling interest 13,867 14,479 Net income attributable to Watsco, Inc. $79,074 $80,061 Diluted earnings per share: Net income attributable to Watsco, Inc. shareholders $79,074 $80,061 Less: distributed and undistributed earnings allocated to restricted common stock (1) 8,034 7,172 Earnings allocated to Watsco, Inc. shareholders $71,040 $72,889 Weighted-average Common and Class B common shares and equivalent
shares used to calculate diluted earnings per share 37,964,580 37,853,255 Diluted earnings per share for Common and Class B common stock (1) $1.87 $1.93 (1)The quarterly EPS results reflect dilution of 7 cents per share in 2026 ($2.8 million impact) and 5 cents per share in 2025 ($1.9 million impact) attributable to the amount that (a) dividends actually paid on restricted common stock exceeded (b) the net income allocable to restricted common stock. The Company expects this dilutive impact to be seasonal during the first and fourth quarters of each year due to EPS in such periods generally being less than the quarterly dividend rate.
WATSCO, INC.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands) March 31,
2026 December 31,
2025Cash and cash equivalents $392,679 $433,283Short-term cash investments 200,000 300,000Accounts receivable, net 839,237 796,181Inventories, net 1,715,195 1,386,317Other current assets 34,067 38,725Total current assets 3,181,178 2,954,506Property and equipment, net 133,299 136,012Operating lease right-of-use assets 460,731 452,547Goodwill, intangibles, net and other 874,289 871,740Total assets $4,649,497 $4,414,805Accounts payable and accrued expenses $834,157 $600,589Current portion of lease liabilities 117,714 117,153Total current liabilities 951,871 717,742Operating lease liabilities, net of current portion 358,490 350,616Deferred income taxes and other liabilities 124,216 124,386Total liabilities 1,434,577 1,192,744Watsco, Inc. shareholders' equity 2,762,105 2,781,376Non-controlling interest 452,815 440,685Total shareholders' equity 3,214,920 3,222,061Total liabilities and shareholders' equity $4,649,497 $4,414,805 WATSCO, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands) Quarters Ended March 31, 2026 2025 Cash flows from operating activities: Net income $92,941 $94,540 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 11,019 10,777 Non-cash contribution to 401(k) plan 9,267 8,743 Share-based compensation 8,077 8,800 Provision for doubtful accounts 1,796 840 Other income from investment in unconsolidated entity (5,480) (5,146)Other, net 968 811 Changes in operating assets and liabilities, net of effects of acquisitions: Accounts receivable, net (45,516) 83,864 Inventories, net (330,428) (389,990)Accounts payable and other liabilities 234,710 8,887 Other, net 3,741 230 Net cash used in operating activities (18,905) (177,644)Cash flows from investing activities: Net proceeds from short-term investments 100,000 255,669 Capital expenditures, net (6,862) (7,443)Business acquisitions, net of cash acquired - (3,670)Net cash provided by investing activities 93,138 244,556 Cash flows from financing activities: Dividends on common stock (121,775) (109,037)Distributions to non-controlling interest - (69,829)Proceeds from dividend reinvestment plan 3,851 6,708 Other, net 3,954 10,479 Net cash used in financing activities (113,970) (161,679)Effect of foreign exchange rate changes on cash and cash equivalents (867) 319 Net decrease in cash and cash equivalents (40,604) (94,448)Cash and cash equivalents at beginning of period 433,283 526,271 Cash and cash equivalents at end of period $392,679 $431,823
Contact
Barry S. Logan
Executive Vice President
(305) 714-4102
e-mail: [email protected]
Watsco (WSO - Free Report) came out with quarterly earnings of $1.87 per share, beating the Zacks Consensus Estimate of $1.73 per share. This compares to earnings of $1.93 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +7.97%. A quarter ago, it was expected that this heating and cooling company would post earnings of $1.94 per share when it actually produced earnings of $1.68, delivering a surprise of -13.4%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Watsco, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $1.53 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.01%. This compares to year-ago revenues of $1.53 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Watsco shares have added about 35.6% since the beginning of the year versus the S&P 500's gain of 4.8%.
What's Next for Watsco?While Watsco has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Watsco was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $4.22 on $2.08 billion in revenues for the coming quarter and $12.53 on $7.38 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - General Industrial is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
DNOW (DNOW - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026.
This energy and industrial distribution company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of -77.3%. The consensus EPS estimate for the quarter has been revised 5.3% lower over the last 30 days to the current level.
DNOW's revenues are expected to be $1.13 billion, up 88.7% from the year-ago quarter.
Comerica Bank raised its stake in shares of Watsco, Inc. (NYSE:WSO – Free Report) by 36.3% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 45,756 shares of the construction company’s stock after buying an additional 12,190 shares during the quarter. Comerica Bank owned about 0.11% of Watsco worth $15,417,000 at the end of the most recent reporting period.
Several other institutional investors also recently modified their holdings of the stock. CWM LLC grew its position in shares of Watsco by 3.8% during the 4th quarter. CWM LLC now owns 710 shares of the construction company’s stock worth $239,000 after buying an additional 26 shares during the period. Massachusetts Financial Services Co. MA grew its position in shares of Watsco by 2.0% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 1,559 shares of the construction company’s stock valued at $525,000 after purchasing an additional 30 shares during the period. Apollon Wealth Management LLC grew its position in shares of Watsco by 6.0% in the 3rd quarter. Apollon Wealth Management LLC now owns 601 shares of the construction company’s stock valued at $243,000 after purchasing an additional 34 shares during the period. Applied Capital LLC FL grew its position in shares of Watsco by 0.5% in the 3rd quarter. Applied Capital LLC FL now owns 6,993 shares of the construction company’s stock valued at $2,827,000 after purchasing an additional 36 shares during the period. Finally, Profund Advisors LLC grew its position in shares of Watsco by 4.7% in the 3rd quarter. Profund Advisors LLC now owns 805 shares of the construction company’s stock valued at $325,000 after purchasing an additional 36 shares during the period. 89.71% of the stock is currently owned by institutional investors and hedge funds.
Watsco Stock Performance Shares of WSO opened at $439.99 on Wednesday. Watsco, Inc. has a 52-week low of $323.05 and a 52-week high of $496.25. The stock has a 50 day simple moving average of $397.51 and a 200 day simple moving average of $376.15. The firm has a market capitalization of $17.86 billion, a PE ratio of 36.33 and a beta of 1.06.
Watsco (NYSE:WSO – Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The construction company reported $1.87 earnings per share for the quarter, topping analysts’ consensus estimates of $1.73 by $0.14. Watsco had a return on equity of 15.49% and a net margin of 6.87%.The firm had revenue of $1.53 billion during the quarter, compared to the consensus estimate of $1.48 billion. During the same quarter in the prior year, the firm posted $1.93 EPS. The business’s revenue was up .1% on a year-over-year basis. Equities research analysts predict that Watsco, Inc. will post 12.53 EPS for the current fiscal year.
Watsco Increases Dividend The company also recently declared a quarterly dividend, which will be paid on Thursday, April 30th. Shareholders of record on Thursday, April 16th will be given a dividend of $3.30 per share. This is an increase from Watsco’s previous quarterly dividend of $3.00. The ex-dividend date of this dividend is Thursday, April 16th. This represents a $13.20 dividend on an annualized basis and a yield of 3.0%. Watsco’s payout ratio is currently 109.00%.
Trending Headlines about Watsco Here are the key news stories impacting Watsco this week:
Positive Sentiment: Signed definitive agreement to acquire Jackson Supply Company (about $230M of annual sales) to add scale in core Sunbelt markets and advance Watsco’s buy‑and‑build strategy — a clear strategic growth move. Watsco To Acquire Jackson Supply Company Positive Sentiment: Q1 results beat consensus: EPS $1.87 vs. ~$1.70 estimate and revenue $1.53B vs. ~$1.48B; company also raised its dividend — supports cash-return thesis and long‑term shareholder value. Watsco (WSO) Q1 Earnings and Revenues Surpass Estimates Neutral Sentiment: Management emphasized a “digital push” and technology adoption on the earnings call, describing cautious optimism about longer‑term efficiency gains — positive strategically but not an immediate earnings fix. Watsco Earnings Call: Digital Push Drives Cautious Optimism Negative Sentiment: Underlying profitability showed pressure: gross margin dipped slightly (~27.9% vs. 28.1% a year ago), operating income declined ~2% (~$110M) and EPS fell year‑over‑year — factors that likely drove the selloff despite the beat. Watsco shares slide as Q1 results show slight margin and EPS pressure despite flat revenue Negative Sentiment: Sales mix was uneven: U.S. sales rose modestly (~+2%) while international sales fell (~-11%), HVAC equipment volumes were down ~1% — sign that seasonal demand and geographic exposure remain risks near term. Watsco, Inc. (WSO) Q1 2026 Earnings Call Transcript Wall Street Analysts Forecast Growth Several brokerages recently issued reports on WSO. Morgan Stanley decreased their price objective on Watsco from $460.00 to $370.00 and set an “equal weight” rating for the company in a research report on Wednesday, January 14th. UBS Group began coverage on Watsco in a research report on Monday, January 5th. They issued a “neutral” rating and a $370.00 price objective for the company. Zacks Research upgraded Watsco from a “strong sell” rating to a “hold” rating in a research report on Wednesday, February 25th. JPMorgan Chase & Co. boosted their price objective on Watsco from $370.00 to $400.00 and gave the company a “neutral” rating in a research report on Thursday, February 19th. Finally, Mizuho set a $425.00 price objective on Watsco in a research report on Wednesday, February 18th. Eight analysts have rated the stock with a Hold rating, According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $382.80.
Check Out Our Latest Report on WSO
About Watsco (Free Report)
Watsco, Inc is the largest distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment, parts and supplies in the United States. Headquartered in Miami, Florida, the company operates a network of more than 600 branches across the continental U.S., Canada and Puerto Rico. Watsco serves residential and commercial contractors by providing essential components for climate control systems, including air conditioners, furnaces, heat pumps, coils, refrigerants, controls and electrical and piping supplies.
Founded in 1947, Watsco has grown from a single regional distributor into an industry leader through a combination of organic expansion, acquisitions and strategic partnerships with original equipment manufacturers such as Carrier, Trane, Goodman and Lennox.
Featured Stories Five stocks we like better than Watsco Want to see what other hedge funds are holding WSO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Watsco, Inc. (NYSE:WSO – Free Report).
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.
« PREVIOUS HEADLINEWest Pharmaceutical Services, Inc. $WST Shares Purchased by Comerica Bank
NEXT HEADLINE »iShares MSCI EAFE Value ETF $EFV Shares Bought by Comerica Bank
It has been about a month since the last earnings report for Watsco (WSO - Free Report) . Shares have lost about 11.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Watsco due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Watsco, Inc. before we dive into how investors and analysts have reacted as of late.
Watsco Q1 Earnings & Revenues Beat Estimates as A2L Transition MaturesWatsco reported first-quarter 2026 results with earnings and revenues beating the Zacks Consensus Estimate. While the top line increased and the bottom line tumbled on a year-over-year basis.
Management characterized first-quarter conditions as more stable, pointing to a more “simplified business environment” now that the transition to A2L products has matured. The company said it expects a more normalized operating backdrop in 2026, while still emphasizing that it remained early in the seasonal selling period.
Inside WSO’s Q1 HeadlinesThe company reported earnings of $1.87 per share, which beat the Zacks Consensus Estimate of $1.73 by 8.1%. Earnings declined 3.1% from $1.93 a year ago.
Revenues were $1.53 billion, up 0.1% year over year and beat the consensus mark of $1.50 billion by 2%.
Inside WSO’s Q1 Revenue Mix and Demand SignalsSales increased 2% in U.S. markets in the first quarter, while international sales declined 11%. By product line, HVAC equipment sales decreased 1%, other HVAC products rose 4%, and commercial refrigeration products increased 11%. HVAC equipment remained the largest contributor at 65% of sales, followed by other HVAC products at 30% and commercial refrigeration at 5%.
Management noted that unit volumes stabilized as the quarter progressed, but the company still cited lingering disruption from last year’s A2L transition, lower home-building activity and more restrained consumer spending for replacement systems and upgrades.
Watsco’s Profitability Slips as Mix ShiftsGross profit was $427.6 million versus $429.6 million in the year-ago quarter. Gross margin declined 20 basis points to 27.9%, which management attributed primarily to the sales mix of HVAC equipment in 2026 compared with 2025.
Selling, general and administrative expenses were essentially flat at $322.9 million and stayed consistent at 21.1% of revenues. Operating income was $110.2 million, translating to a 7.2% operating margin versus 7.3% in the prior-year quarter, reflecting limited leverage on largely unchanged expense levels.
Watsco’s Cash Use Improves and Balance Sheet Stays CleanWatsco ended the quarter with $392.7 million in cash and cash equivalents, down from $433.3 million as of Dec. 31, 2025. It also held $200 million of short-term cash investments and reported no outstanding borrowings under its revolving credit agreement at March 31, 2026.
Cash used in operating activities was $18.9 million in the first quarter of 2026, a sharp improvement from $177.6 million of cash used in the year-ago quarter. Management attributed the year-over-year change primarily to the timing of vendor payments and an increase in accounts receivable in 2026 versus 2025.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.
VGM ScoresAt this time, Watsco has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Watsco has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerWatsco belongs to the Zacks Manufacturing - General Industrial industry. Another stock from the same industry, Crane (CR - Free Report) , has gained 1.5% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Crane reported revenues of $696.4 million in the last reported quarter, representing a year-over-year change of +24.9%. EPS of $1.65 for the same period compares with $1.39 a year ago.
Crane is expected to post earnings of $1.65 per share for the current quarter, representing a year-over-year change of +10.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Crane. Also, the stock has a VGM Score of C.
MIAMI, June 02, 2026 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) announced today the closing of its acquisition of Jackson Supply Company.
Jackson Supply has been a cornerstone of the HVAC distribution industry for more than 50 years, growing from its founding in 1972 into one of the Sunbelt’s largest and most respected independent distributors, with $230 million in sales in 2025. This investment represents a meaningful expansion of Watsco’s footprint across the Sunbelt, adding 25 locations and approximately 5,000 contractor customers across Texas, Louisiana, Tennessee, Alabama, Mississippi, Oklahoma and Arizona — some of the fastest-growing markets in the United States.
Importantly, Jackson Supply will retain its name, vendor relationships, go-to-market strategy, brand identity, and culture – core elements that have driven its success. Jackson Supply will continue to be led by its existing leadership team, consistent with Watsco’s long-standing approach of investing in outstanding leaders and proven cultures.
Albert H. Nahmad, Watsco’s Chairman and CEO, said: “We are thrilled to officially welcome Jackson Supply into the Watsco family. Jim Durrett and his exceptional team have built one of the most respected and entrepreneurial businesses in the HVAC distribution industry over more than five decades. We are humbled by their success and look forward to investing in their growth and supporting their ambitions for years to come.”
The closing of the Jackson Supply transaction underscores Watsco’s ongoing commitment to expanding its share of the estimated $74 billion North American HVAC/R distribution market. Watsco remains actively engaged in seeking additional growth opportunities with high-quality, independent distributors who share its values and growth ambitions.
About Watsco
Watsco is the largest distributor in the highly-fragmented North American HVAC/R market. Watsco’s solid financial position and culture of innovation has enabled investments in long-term growth, including the Company’s industry-leading technology platforms. Today, approximately 74,000 contractors, installers and technicians engage digitally with the Company, resulting in improved growth and lower attrition. The Company is now advancing AI-driven initiatives to leverage its extensive data assets to enhance the customer experience and improve efficiencies. These investments position Watsco to capture market share as contractors increasingly adopt digital tools and incorporate data-driven solutions in their businesses.
This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results and the related assumptions underlying our expected results. These forward-looking statements are distinguished by use of words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” or “intend,” the negative of these terms, and similar references to future periods. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive market, new housing starts and completions, capital spending in commercial construction, consumer spending and debt levels, regulatory and other factors, including, without limitation, the effects of supplier concentration, competitive conditions within Watsco’s industry, the seasonal nature of sales of Watsco’s products, the ability of the Company to expand its business, insurance coverage risks and final GAAP adjustments. Detailed information about these factors and additional important factors can be found in the documents that Watsco files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. Watsco assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except as required by applicable law.
Barry S. Logan
Executive Vice President
(305) 714-4102
e-mail: [email protected]
Watsco, Inc.
2665 S. Bayshore Drive, Suite 901
Miami, FL 33133, USA
(305) 714-4100
www.watsco.com
Key Takeaways Watsco acquired Jackson Supply, adding 25 Sunbelt locations and expanding market reach.Jackson Supply generated $230M in 2025 sales and will operate independently under Watsco.E-commerce sales rose 16% in Q1 2026, with digital sales reaching 36% of total revenues. Watsco, Inc. (WSO - Free Report) has acquired Jackson Supply Company, which was reportedly announced on April 28, 2026.
WSO stock gained 1.2% during yesterday’s trading hours, post the acquisition announcement.
Watsco’s Bet on Jackson SupplyWith sales worth $230 million (as of 2025), Jackson Supply is one of the prominent HVAC distributors in the Sunbelt region of the United States. Its diversified and well-balanced product portfolio features Goodman and Amana-branded HVAC equipment manufactured by Daikin Comfort Technologies North America, Inc., along with a wide range of supplies, accessories and replacement parts sourced from nearly 200 vendors.
Jackson Supply will retain its name, vendor relationships, market strategy, brand identity and cultural elements even after the acquisition. The company will be operating as an independent business under Watsco.
This strategic buyout is expected to meaningfully expand Watsco’s geographic footprint in 25 locations across the Sunbelt, including Texas, Louisiana, Tennessee, Alabama, Mississippi, Oklahoma and Arizona. Besides, this transaction aligns with WSO’s ongoing efforts to expand its share of the estimated $74 billion North American HVAC/R distribution market.
WSO’s Efforts to Drive PerformanceApart from strategic acquisitions, Watsco indulges in organic business investments aimed at boosting its profitability and strengthening growth prospects. The company intends to continue emphasizing operating discipline through structural investments in pricing optimization, inventory management and technology. It is accelerating the deployment of pricing optimization tools, enhancing inventory efficiency through its Hydros system and expanding initiatives in the fragmented parts and supplies market.
Besides, digital adoption continues to deepen across Watsco’s contractor base, supporting both revenue capture and customer retention. In the first quarter of 2026, e-commerce sales increased 16% compared with the prior year, and e-commerce sales for the trailing 12 months were approximately $2.6 billion, representing 36% of total sales.
Shares of this HVAC/R distributor in North America have gained 8% in the year-to-date period, outperforming the Zacks Manufacturing - General Industrial industry. Its ongoing technology investment, pricing optimization and AI-driven tools inclusion support its long-term margin expansion and deepen contractor engagement.
Image Source: Zacks Investment Research
WSO Stock’s Zacks Rank & Key PicksWatsco currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Industrial Products sector.
Helios Technologies, Inc. (HLIO - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Helios delivered a trailing four-quarter earnings surprise of 15.7%, on average. The stock has climbed 56.1% year to date. The Zacks Consensus Estimate for Helios’ 2026 sales and earnings per share (EPS) indicates improvements of 2.9% and 12.9%, respectively, from a year ago.
Century Aluminum Company (CENX - Free Report) presently sports a Zacks Rank of 1. It has a trailing four-quarter negative earnings surprise of 75.7%, on average. Shares of Century Aluminum have surged 75.6% year to date.
The Zacks Consensus Estimate for Century Aluminum’s 2026 sales and EPS indicates growth of 39.2% and 2,876.2%, respectively, from the prior-year levels.
The Gorman-Rupp Company (GRC - Free Report) currently sports a Zacks Rank of 1. Gorman-Rupp delivered a trailing four-quarter earnings surprise of 17.6%, on average. The stock has gained 58.3% year to date.
The Zacks Consensus Estimate for Gorman-Rupp’s 2026 sales and EPS implies an increase of 6.5% and 21.5%, respectively, from a year ago.
