MIAMI, April 23, 2025 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE:WSO) announced its operating results for the first quarter ended March 31, 2025 and provided commentary on growth opportunities, business trends, its financial position and long-term growth drivers. Watsco is the leading distributor in the HVAC/R marketplace, serving over 375,000 contractors, technicians and installers from 693 locations across the U.S., Canada and Latin America. Since entering distribution in 1989, the Company has scaled to be th ...

Debt-Free Balance Sheet, Industry-Leading Technology and Scale Create Competitive Advantage; Business Trends Improve Ahead of Summer Selling SeasonMIAMI, April 23, 2025 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) announced its operating results for the first quarter ended March 31, 2025 and provided commentary on growth opportunities, business trends, its financial position and long-term growth drivers. Watsco is the leading distributor in the HVAC/R marketplace, serving over 375,000 contractors, technicia ...

MIAMI, April 09, 2025 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE:WSO) announced today that it has scheduled a conference call to discuss its 2025 first quarter results on Wednesday, April 23, 2025 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 web-cast 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 ...

Accordingly, Watsco has the opportunity to be a significant and important contributor toward climate change as it plays an important role to lower CO2e emissions. According to the Department of Energy, HVAC systems account for roughly half of U.S. household energy consumption. As such, replacing older systems at higher efficiency levels is a critical means for homeowners to reduce electricity consumption and their carbon footprint. Based on estimates validated by independent sources, Watsco averted an estim ...

Core Viewpoint - Watsco's shares have decreased by approximately 0.7% since the last earnings report, but have outperformed the S&P 500 index [1] Estimates Movement - Estimates for Watsco have trended upward over the past month [2] VGM Scores - Watsco has a strong Growth Score of A and a Momentum Score of A, but a Value Score of D, placing it in the bottom 40% for value investment strategy. The overall aggregate VGM Score is B [3] Outlook - The upward trend in estimates is promising, and Watsco holds a Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the coming months [4] Industry Performance - Watsco is part of the Zacks Building Products - Air Conditioner and Heating industry. Carrier Global, a competitor in the same industry, reported revenues of $5.15 billion for the last quarter, reflecting a year-over-year increase of 0.9% [5] - Carrier Global is expected to report earnings of $0.57 per share for the current quarter, which represents an 8.1% decrease from the previous year. The Zacks Consensus Estimate for Carrier has increased by 1.6% over the last 30 days [6]

Watsco, Inc. (WSO) is benefiting from strong residential demand and higher commercial equipment sales. The company’s growth is supported by consistent investments in technology and strategic acquisitions. Its e-commerce and digital sales platform is also contributing to performance. However, increased costs and expenses are a concern.Shares of Watsco have risen 5.5% in the past three months against the Zacks Building Products - Air Conditioner and Heating industry’s 7.7% decline. WSO also fared better than ...

MIAMI, March 11, 2025 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) today announced its participation in the upcoming J.P. Morgan 2025 Industrials Conference. Barry Logan, Executive Vice President, and Rick Gomez, Vice President, will participate in a fireside chat at the event on Wednesday, March 12, 2025 at 8:15 a.m. (EDT). A live webcast of the event will be available in the Investor Relations section of Watsco’s website at https://investors.watsco.com/events. About Watsco Watsco is the largest distributo ...

I hold a Master's in Accounting, am a small business owner, and am an assistant investing educator for beginning and intermediate individual investors. My investing analysis focus is on identifying and developing deep knowledge of great businesses. I have helped manage businesses, spend most of my extra time learning about investing and finance, and have been investing in the stock market for three years with a long-term investment focus. I do not consider myself an expert in stock analysis, but I seek to p ...

Revenue Growth and Market Expansion - Watsco's revenues in HVAC/R distribution increased from $64.1 million in 1989 to $7.6 billion in 2024, reflecting a significant growth strategy through acquisitions and product introductions [17]. - The HVAC/R distribution industry in the U.S. has an estimated annual market size of $74.0 billion, with residential HVAC/R products valued at approximately $134.0 billion [19]. - The company has acquired 70 HVAC/R distribution businesses since 1989, contributing to substantial sales and earnings growth through strategic acquisitions and market expansion [32]. - Watsco, Inc. reported a revenue increase of 12% year-over-year, reaching $1.5 billion for the latest quarter [157]. - Watsco, Inc. provided an optimistic outlook, projecting a revenue growth of 8-10% for the next fiscal year [157]. - Market expansion efforts include entering three new states, aiming for a 5% market share increase in those regions [157]. Employee and Workforce Management - The voluntary turnover rate for U.S. employees was approximately 18% in 2024, down from 20% in 2022, suggesting improved employee retention strategies [36]. - Watsco employs around 7,295 individuals, with 8% located in Canada and Mexico, and utilizes independent contractors to supplement its workforce [35]. - Watsco's culture promotes employee ownership, with around 4,200 employees holding shares in the company, aligning their interests with long-term shareholder value [41]. - The company has approximately 1,100 salespeople, averaging 11 years of experience in the HVAC/R distribution industry [46]. Product and Service Offerings - The company focuses on expanding its product lines and introducing private-label products to capture market share and enhance service offerings [30]. - HVAC equipment sales accounted for 69% of revenues in both 2024 and 2023, while other HVAC products comprised 27% and commercial refrigeration products accounted for 4% [45]. - The replacement market for residential air conditioning equipment is estimated to account for approximately 85%-90% of industry unit sales in the U.S., expected to increase as older units are replaced [60]. - The company completed the transition of its inventory to higher SEER products during 2023, in line with new efficiency standards effective from 2023 [72]. - The company focuses on customer convenience through mobile applications and e-commerce, allowing 24/7 access to product information and order management [57]. Financial Performance and Shareholder Returns - The company achieved a net income of $150 million, reflecting a 10% increase compared to the same quarter last year [157]. - The company has committed to increasing its dividend payout by 5% in the upcoming quarter [157]. - The cumulative total shareholder return for Watsco, Inc. common stock increased from 100.00 to 305.64 from December 31, 2019, to December 31, 2024 [129]. - The company implemented a Dividend Reinvestment Plan (DRIP) on March 29, 2024, allowing shareholders to reinvest dividends into additional shares [107]. Strategic Partnerships and Supplier Relationships - Joint ventures with Carrier represented 54% of revenues in 2024, highlighting the strategic importance of these partnerships [55]. - The company maintains a diverse supplier base, with the top ten suppliers accounting for 85% of purchases, including 62% from Carrier and 9% from Rheem [61]. - The company maintains trade name and distribution agreements with Carrier and Rheem, providing exclusive distribution rights in specified territories [85]. Sustainability and Environmental Impact - The company estimates it has averted approximately 22.8 million metric tons of CO2e emissions from January 1, 2020, to December 31, 2024, equivalent to nearly 5.3 million gas-powered vehicles driven for one year [77]. - Demand for higher-efficiency products is expected to increase due to the U.S. Inflation Reduction Act of 2022, which includes $4.3 billion for state-administered consumer rebate programs [78]. - A strategic focus on sustainability initiatives is expected to reduce operational costs by 3% over the next two years [157]. Risks and Challenges - The company faces risks from cybersecurity threats that could disrupt operations and adversely impact financial performance [91]. - The company maintains a dedicated cybersecurity team to assess and manage risks associated with cybersecurity threats [115]. - The company relies on credit markets for financial commitments, and disruptions in these markets could adversely affect liquidity and operational performance [99]. - The company is subject to various international risks, including changes in local laws and political instability, which could adversely affect operations [100]. Corporate Governance and Compliance - The management evaluated the effectiveness of disclosure controls and procedures, concluding they were effective at a reasonable assurance level as of the end of the reporting period [135][136]. - There were no changes in internal controls over financial reporting during the quarter ended December 31, 2024, that materially affected the internal control [138]. - The company has adopted an insider trading policy to promote compliance with insider trading laws and regulations [148]. - No disagreements with accountants on accounting and financial disclosure were reported [134]. Future Plans and Investments - The company is investing $50 million in new product development and technology enhancements [157]. - The company plans to implement a new customer relationship management system to improve user engagement and retention [157]. - The company plans to pursue additional acquisitions of complementary businesses, which may require incurring additional debt or issuing shares, potentially diluting existing shareholders [87].

Core Viewpoint - Watsco (WSO) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - For the fiscal year ending December 2025, Watsco is expected to earn $14.68 per share, representing a 10.4% increase from the previous year, with a 1.5% rise in the Zacks Consensus Estimate over the past three months [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The upgrade of Watsco to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for higher stock movement in the near term [10].