Watsco (WSO) Q4 Earnings and Revenues Surpass Estimates

Core Insights - Watsco reported quarterly earnings of $2.37 per share, exceeding the Zacks Consensus Estimate of$ 2.13 per share, and showing an increase from $2.06 per share a year ago, resulting in an earnings surprise of 11.27% [1] - The company generated revenues of$ 1.75 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 6.18% and up from $1.6 billion year-over-year [2] - Watsco's stock has underperformed the market with a 2.1% increase since the beginning of the year, compared to the S&P 500's 4% gain [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is$ 2.21 on revenues of $1.62 billion, and for the current fiscal year, it is$ 14.50 on revenues of $7.89 billion [7] - The estimate revisions trend for Watsco is favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Building Products - Air Conditioner and Heating industry is currently ranked in the top 9% of over 250 Zacks industries, suggesting a strong outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]