Watsco Reports GAAP EPS of $3.98, Falling Short by $0.31; Revenue of $2.07B Misses Expectations by $70M
Written by Emily J. Thompson, Senior Investment Analyst
Source: SeekingAlpha
Q3 Financial Performance: Watsco reported a Q3 GAAP EPS of $3.98, missing expectations by $0.31, with revenue of $2.07 billion down 4.2% year-over-year, also missing estimates by $70 million.
Profit Margins and Expenses: Gross profit remained flat at $569 million, but gross profit margin improved to a record 27.5%. SG&A expenses rose by 5%, leading to a 6% decrease in operating income to $235 million.
Analyst Views on WSO.B
Wall Street analysts forecast WSO.B stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WSO.B is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
0 Buy
0 Hold
0 Sell
Current: 375.680
Low
Averages
High
Current: 375.680
Low
Averages
High
About WSO.B
Watsco, Inc. is a distributor of heating, air conditioning and refrigeration (HVAC/R) products with locations in the United States, Canada, Mexico, and Puerto Rico, and on an export basis to Latin America and the Caribbean. The Company sells products to the commercial refrigeration market, which include condensing units, compressors, evaporators, valves, refrigerants, walk-in coolers, and ice machines for industrial and commercial applications. Additionally, it sells a variety of non-equipment products including parts, ductwork, air movement products, insulation, tools, installation supplies, thermostats, and air quality products. The Company distributes products manufactured by Flexible Technologies, Inc., a subsidiary of Smiths Group plc, Resideo Technologies, Inc., Southwark Metal Mfg. Co., Johns Manville, a subsidiary of Berkshire Hathaway, Inc., and Owens Corning Insulating Systems, LLC, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
