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Watsco's Q4 Earnings & Revenues Beat, HVAC Equipment Sales Up Y/Y
WSOWatsco(WSO) ZACKS·2025-02-19 16:25

Core Insights - Watsco, Inc. (WSO) reported strong fourth-quarter 2024 results with earnings and revenues exceeding Zacks Consensus Estimates and showing year-over-year growth [1][5] - The quarterly performance was driven by robust sales in residential and commercial equipment, alongside the recovery of market share from a core OEM affected by supply chain issues in 2023 [2][3] Financial Performance - WSO's earnings per share (EPS) for the quarter was 2.37,surpassingtheZacksConsensusEstimateof2.37, surpassing the Zacks Consensus Estimate of 2.13 by 11.3%, and up from 2.06inthesamequarterlastyear[5]−Revenuesreached2.06 in the same quarter last year [5] - Revenues reached 1.75 billion, exceeding the consensus mark of 1.65billionby6.21.65 billion by 6.2% and reflecting a 9% increase year over year [5] - The gross margin expanded by 90 basis points to 26.7%, while the operating margin increased by 110 basis points to 7.8% [9] Sales Breakdown - Sales of HVAC equipment, which constitutes 69% of net sales, increased by 14% year over year, while sales of other HVAC products remained flat [6] - Commercial refrigeration product sales grew by 4% from the previous year [6] - E-commerce sales rose by 8% to 2.6 billion in 2024, accounting for 35% of annual net sales, with a 16% increase in the fourth quarter [7] Annual Highlights - For the full year 2024, WSO reported net sales of 7.62billion,a57.62 billion, a 5% increase year over year, although gross margin decreased to 26.8% from 27.4% [10] - Full-year EPS was 13.30, down from 13.67in2023[10]CashPosition−AsofDecember31,2024,WSO′scashandcashequivalentstotaled13.67 in 2023 [10] Cash Position - As of December 31, 2024, WSO's cash and cash equivalents totaled 526.3 million, significantly up from 210.1millionattheendof2023,withnoborrowingsunderitsrevolvingcreditfacility[11]−Netcashprovidedbyoperatingactivitieswas210.1 million at the end of 2023, with no borrowings under its revolving credit facility [11] - Net cash provided by operating activities was 773.1 million compared to $562 million the previous year [11] Market Reaction - Following the earnings announcement, WSO stock increased by 9.7% during trading hours and gained an additional 2.1% in after-hours trading, likely influenced by an 11% increase in the annual dividend payment [4]