I have admired Watsco’s ( WSO ) business for quite a long time, particularly due to its industry positioning (largest player in a fragmented industry), phenomenal leadership, and quite unique incentive structure that promotes entrepreneurialism at the grass-roots managementI am a value focused investor, conducting fundamental research on sectors like but not limited to chemicals, homebuilders, building materials, industrials and metals & mining. I prefer to invest in stocks which are cheaply available and h ...

Group 1 - Watsco is recognized as the largest player in a fragmented industry, showcasing strong industry positioning [1] - The company benefits from phenomenal leadership and a unique incentive structure that fosters entrepreneurialism at the grassroots management level [1] - The investment focus is on value-oriented stocks that are available at a low price and have near-term catalysts, with an investment horizon ranging from a quarter to two years [1] Group 2 - The analysis is based on fundamental research across various sectors, including chemicals, homebuilders, building materials, industrials, and metals & mining [1] - The analyst has over 3 years of active investing experience and has served as a buy-side analyst at a boutique research firm and family offices [1]

Core Insights - Watsco, Inc. is a leading player in the North American HVAC market, with a strong financial foundation of over $640 million in cash and investments and no debt [1] - The company reported earnings per share (EPS) of $3.98 for Q3 2025, missing the estimated $4.44, which represents a 5.46% negative surprise [2] - Watsco's revenue for the same quarter was $2.07 billion, falling short of the estimated $2.17 billion, marking a 2.21% miss [3] Financial Performance - The EPS decreased from $4.22 in the same quarter last year, indicating a challenging period for the company [2] - Revenue declined from $2.16 billion reported in the same period last year [3] - Watsco has only surpassed consensus revenue estimates once in the last four quarters [3] Market Position and Valuation - Despite the earnings and revenue shortfalls, Watsco maintains a strong market position with a price-to-earnings (P/E) ratio of 26.52 and a price-to-sales ratio of 2.01 [4][6] - The company's enterprise value to sales ratio is also 2.01, indicating stable valuation relative to its sales [4] - Watsco's low debt-to-equity ratio of 0.10 and a robust current ratio of 3.84 further underscore its financial health [4][6] Cash Flow and Returns - Watsco's ability to generate cash flow is reflected in its enterprise value to operating cash flow ratio of 27.23 [5] - The company's earnings yield stands at 3.77%, providing insight into the return on investment [5] - Watsco has achieved an 18% compounded annual total-shareholder return since 1989, driven by strategic acquisitions and organic growth [5]

Watsco (NYSE:WSO) Q3 2025 Earnings Call October 29, 2025 10:00 AM ET Company ParticipantsAaron J. Nahmad - PresidentChris Snyder - Executive Director of Equity ResearchAlbert Nahmad - Chairman and CEOBarry Logan - Senior VPNigel Coe - Managing DirectorJeffrey Sprague - Founder and Managing PartnerPaul Johnston - EVPRick Gomez - VP of Corporate DevelopmentConference Call ParticipantsMitch Moore - Associate Analyst in Equity ResearchSteve Toussaint - AnalystTommy Moll - Equity Research AnalystDavid Manthey - ...

Watsco (NYSE:WSO) Q3 2025 Earnings Call October 29, 2025 10:00 AM ET Company ParticipantsAaron J. Nahmad - PresidentChris Snyder - Executive Director of Equity ResearchAlbert Nahmad - Chairman and CEOBarry Logan - Senior VPNigel Coe - Managing DirectorJeffrey Sprague - Founder and Managing PartnerPaul Johnston - EVPRick Gomez - VP of Corporate DevelopmentConference Call ParticipantsMitch Moore - Associate Analyst in Equity ResearchSteve Toussaint - AnalystTommy Moll - Equity Research AnalystDavid Manthey - ...

Watsco (NYSE:WSO) Q3 2025 Earnings Call October 29, 2025 10:00 AM ET Speaker1Hello, good day and welcome to the Watsco Inc. third quarter conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch tone phone. To withdraw your question, please press star then two. Pl ...

For the quarter ended September 2025, Watsco (WSO) reported revenue of $2.07 billion, down 4.3% over the same period last year. EPS came in at $3.98, compared to $4.22 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $2.11 billion, representing a surprise of -2.21%. The company delivered an EPS surprise of -5.46%, with the consensus EPS estimate being $4.21.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street exp ...

Watsco (WSO) came out with quarterly earnings of $3.98 per share, missing the Zacks Consensus Estimate of $4.21 per share. This compares to earnings of $4.22 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5.46%. A quarter ago, it was expected that this heating and cooling company would post earnings of $4.84 per share when it actually produced earnings of $4.52, delivering a surprise of -6.61%.Over the last four quarters, th ...

Financial Results - Watsco, Inc. reported financial results for the quarter and nine months ended September 30, 2025[7] - The press release detailing the financial results was issued on October 29, 2025[10] Company Information - The company is listed on the New York Stock Exchange under the symbols WSO and WSOB[5]

Strong Balance Sheet and Market-Leading Technologies Enable Continued Investments in GrowthMIAMI, Oct. 29, 2025 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) announced its operating results for the third quarter and nine-month period ended September 30, 2025. The Company also provided updates related to innovation and technology, business trends and long-term growth opportunities. Watsco is the largest distributor in the highly-fragmented $74 billion North American market for HVAC products. Since entering di ...