Don't Overlook Watsco (WSO) International Revenue Trends While Assessing the Stock

Core Insights - Watsco's international operations are crucial for assessing its financial strength and growth potential, especially given its global presence [1][2][3] Revenue Performance - The total revenue for Watsco in the quarter was $2.07 billion, reflecting a year-over-year decline of 4.3% [4] - Revenue from Canada was $87.81 million, accounting for 4.3% of total revenue, which was a 13% miss compared to the consensus estimate of $100.93 million [5] - Latin America and the Caribbean generated $90.83 million, representing 4.4% of total revenue, also missing projections by 14.42% compared to the expected $106.13 million [6] Future Projections - Analysts project Watsco's revenues for the ongoing fiscal quarter to be $1.65 billion, a decline of 6.1% from the previous year, with expected contributions from Canada and Latin America at $83.48 million and $86.39 million, respectively [7] - For the full year, total annual revenue is expected to be $7.33 billion, down 3.8% from last year, with Canada and Latin America projected to contribute $360.5 million and $386.91 million, respectively [8] Market Context - The reliance on international markets presents both opportunities and challenges for Watsco, making it essential to monitor international revenue trends for future projections [9][10] - The company's stock has seen a decline of 4.2% over the past four weeks, contrasting with a 0.3% increase in the S&P 500, and a 15.3% decline over the past three months compared to a 6.4% increase in the S&P 500 [13]