Watsco (WSO) Misses Q1 Earnings and Revenue Estimates

Core Insights - Watsco reported quarterly earnings of $1.93 per share, missing the Zacks Consensus Estimate of $2.29 per share, and down from $2.17 per share a year ago, representing an earnings surprise of -15.72% [1] - The company posted revenues of $1.53 billion for the quarter, missing the Zacks Consensus Estimate by 7.62%, and down from $1.57 billion year-over-year [2] - Watsco has surpassed consensus EPS estimates only once in the last four quarters and has topped revenue estimates just once in the same period [2] Earnings Outlook - The sustainability of Watsco's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $4.93 on revenues of $2.27 billion, and for the current fiscal year, it is $14.60 on revenues of $8.01 billion [7] Industry Context - The Building Products - Air Conditioner and Heating industry is currently ranked in the bottom 34% of over 250 Zacks industries, indicating potential challenges for Watsco's stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Watsco's stock performance [5][6]