Watsco GAAP EPS of $4.52 misses by $0.28, revenue of $2.06B misses by $170M
Watsco Q2 Financial Performance: Watsco reported a Q2 GAAP EPS of $4.52, missing expectations by $0.28, with revenue declining 3.7% year-over-year to $2.06 billion, falling short by $170 million.
Market Trends and Challenges: The company experienced a 3% decline in domestic sales and a 12% drop in international markets, particularly noting a 6% decrease in HVAC equipment sales, while commercial refrigeration products saw a slight increase.
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Significant Friday Options Trading: HUT, UBER, WSO
Uber Options Trading: Uber Technologies Inc (UBER) experienced a significant options trading volume of 124,314 contracts, equating to about 12.4 million underlying shares, with notable activity in the $81 strike call option expiring December 26, 2025.
Watsco Options Trading: Watsco Inc. (WSO) also saw considerable options trading, with 2,389 contracts traded, representing approximately 238,900 underlying shares, particularly in the $310 strike call option expiring August 21, 2026.
Trading Volume Comparison: The options trading volumes for both UBER and WSO represent over 50% of their respective average daily trading volumes over the past month, indicating heightened investor interest.
Further Information: For additional details on available options expirations for UBER, WSO, or HUT, resources can be found at StockOptionsChannel.com.
Watsco (WSO) Offers January 2026 Options
Put Contract Overview: The $320.00 put contract has a bid of $7.50, allowing investors to buy shares at a cost basis of $312.50, which is a 4% discount from the current price of $333.15. There is a 65% chance the contract may expire worthless, offering a potential 2.34% return on cash commitment.
Call Contract Overview: The $340.00 call contract has a bid of $12.20, and if shares are purchased at $333.15 and the call is sold, it could yield a 5.72% return if the stock is called away by January 2026. There is a 53% chance this contract may also expire worthless, providing a potential 3.66% additional return.
Volatility Insights: The implied volatility for the put contract is 33% and for the call contract is 36%, while the actual trailing twelve-month volatility is calculated at 32%.
YieldBoost Concept: Both the put and call contracts offer a "YieldBoost," with the put providing a 15.01% annualized return if it expires worthless, and the call offering a 23.45% annualized return under similar conditions.
Are Options Traders Anticipating a Significant Shift in Watsco Stock?
Implied Volatility in Options Market: Watsco, Inc. has seen significant implied volatility in its options, particularly the Nov 21, 2025 $250.00 Call, indicating that investors expect a major price movement, possibly due to an upcoming event.
Analyst Sentiment: Watsco currently holds a Zacks Rank #4 (Sell) in the Building Products - Air Conditioner and Heating Industry, with no analysts increasing their earnings estimates for the current quarter and four revising them downward, leading to a decrease in the consensus estimate from $2.48 to $2.28 per share.
Options Trading Strategy: The high implied volatility may attract options traders looking to sell premium, a strategy that benefits from the stock not moving as much as anticipated by expiration.
Investment Opportunities: Zacks Investment Research highlights several stocks with potential for significant gains, suggesting that while not all picks will succeed, previous recommendations have yielded impressive returns.
JP Morgan Keeps Neutral Rating on Watsco, Reduces Price Target to $360
Real-time Intelligence: Benzinga Pro offers the fastest news alerts for traders, helping them stay informed and make timely decisions in the stock market.
Exclusive Content: Subscribers gain access to exclusive stories and insights generated by Benzinga reporters, enhancing their trading strategies.
Community of Traders: Over 10,000 serious traders are part of the Benzinga Pro community, sharing knowledge and experiences to improve their market performance.
Market Winning Tools: The platform provides tools and resources designed to help traders win in the markets every day.
Watsco aims for enhanced inventory turnover and margin growth as A2L transition approaches finalization.
Management Insights: Watsco, Inc. reported a 4% decline in total sales but achieved record cash flow of $355 million and expanded gross margins to 27.5%. The transition to next-generation equipment with A2L refrigerants is nearly complete, which management believes will simplify operations moving forward.
Technology and E-commerce Focus: The company emphasized its commitment to technology adoption, with e-commerce sales accounting for 34% of total sales and significant growth in its digital selling platform, OnCallAir. Investments in AI and pricing optimization are also part of their strategy to enhance competitiveness.
Outlook and Challenges: Management anticipates easing volatility as the product transition concludes but acknowledges ongoing challenges with unit volume softness and macroeconomic uncertainty. Analysts expressed concerns about demand recovery and inventory management.
Final Takeaway: Despite current sales declines, Watsco's strong cash flow, margin improvements, and solid balance sheet position the company well for future growth opportunities and acquisitions as market conditions stabilize.
Watsco to Hold Q3 2025 Earnings Conference Call at 10:00 AM ET
Conference Call Announcement: Watsco Inc (WSO) will hold a conference call on October 29, 2025, at 10:00 AM ET to discuss its Q3 25 earnings results.
Access Information: The live webcast can be accessed through Watsco's official website, and listeners can join the call by dialing specific phone numbers for US and international participants.
Significant Friday Options Trading: HUT, UBER, WSO
Uber Options Trading: Uber Technologies Inc (UBER) experienced a significant options trading volume of 124,314 contracts, equating to about 12.4 million underlying shares, with notable activity in the $81 strike call option expiring December 26, 2025.
Watsco Options Trading: Watsco Inc. (WSO) also saw considerable options trading, with 2,389 contracts traded, representing approximately 238,900 underlying shares, particularly in the $310 strike call option expiring August 21, 2026.
Trading Volume Comparison: The options trading volumes for both UBER and WSO represent over 50% of their respective average daily trading volumes over the past month, indicating heightened investor interest.
Further Information: For additional details on available options expirations for UBER, WSO, or HUT, resources can be found at StockOptionsChannel.com.
Watsco (WSO) Offers January 2026 Options
Put Contract Overview: The $320.00 put contract has a bid of $7.50, allowing investors to buy shares at a cost basis of $312.50, which is a 4% discount from the current price of $333.15. There is a 65% chance the contract may expire worthless, offering a potential 2.34% return on cash commitment.
Call Contract Overview: The $340.00 call contract has a bid of $12.20, and if shares are purchased at $333.15 and the call is sold, it could yield a 5.72% return if the stock is called away by January 2026. There is a 53% chance this contract may also expire worthless, providing a potential 3.66% additional return.
Volatility Insights: The implied volatility for the put contract is 33% and for the call contract is 36%, while the actual trailing twelve-month volatility is calculated at 32%.
YieldBoost Concept: Both the put and call contracts offer a "YieldBoost," with the put providing a 15.01% annualized return if it expires worthless, and the call offering a 23.45% annualized return under similar conditions.
Are Options Traders Anticipating a Significant Shift in Watsco Stock?
Implied Volatility in Options Market: Watsco, Inc. has seen significant implied volatility in its options, particularly the Nov 21, 2025 $250.00 Call, indicating that investors expect a major price movement, possibly due to an upcoming event.
Analyst Sentiment: Watsco currently holds a Zacks Rank #4 (Sell) in the Building Products - Air Conditioner and Heating Industry, with no analysts increasing their earnings estimates for the current quarter and four revising them downward, leading to a decrease in the consensus estimate from $2.48 to $2.28 per share.
Options Trading Strategy: The high implied volatility may attract options traders looking to sell premium, a strategy that benefits from the stock not moving as much as anticipated by expiration.
Investment Opportunities: Zacks Investment Research highlights several stocks with potential for significant gains, suggesting that while not all picks will succeed, previous recommendations have yielded impressive returns.
JP Morgan Keeps Neutral Rating on Watsco, Reduces Price Target to $360
Real-time Intelligence: Benzinga Pro offers the fastest news alerts for traders, helping them stay informed and make timely decisions in the stock market.
Exclusive Content: Subscribers gain access to exclusive stories and insights generated by Benzinga reporters, enhancing their trading strategies.
Community of Traders: Over 10,000 serious traders are part of the Benzinga Pro community, sharing knowledge and experiences to improve their market performance.
Market Winning Tools: The platform provides tools and resources designed to help traders win in the markets every day.
Watsco aims for enhanced inventory turnover and margin growth as A2L transition approaches finalization.
Management Insights: Watsco, Inc. reported a 4% decline in total sales but achieved record cash flow of $355 million and expanded gross margins to 27.5%. The transition to next-generation equipment with A2L refrigerants is nearly complete, which management believes will simplify operations moving forward.
Technology and E-commerce Focus: The company emphasized its commitment to technology adoption, with e-commerce sales accounting for 34% of total sales and significant growth in its digital selling platform, OnCallAir. Investments in AI and pricing optimization are also part of their strategy to enhance competitiveness.
Outlook and Challenges: Management anticipates easing volatility as the product transition concludes but acknowledges ongoing challenges with unit volume softness and macroeconomic uncertainty. Analysts expressed concerns about demand recovery and inventory management.
Final Takeaway: Despite current sales declines, Watsco's strong cash flow, margin improvements, and solid balance sheet position the company well for future growth opportunities and acquisitions as market conditions stabilize.
Watsco to Hold Q3 2025 Earnings Conference Call at 10:00 AM ET
Conference Call Announcement: Watsco Inc (WSO) will hold a conference call on October 29, 2025, at 10:00 AM ET to discuss its Q3 25 earnings results.
Access Information: The live webcast can be accessed through Watsco's official website, and listeners can join the call by dialing specific phone numbers for US and international participants.
