Analysts Estimate Watsco (WSO) to Report a Decline in Earnings: What to Look Out for

Core Viewpoint - The market anticipates a year-over-year decline in Watsco's earnings due to lower revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Watsco is expected to report quarterly earnings of $1.94 per share, reflecting an 18.1% decrease year-over-year, and revenues of $1.61 billion, down 8.3% from the previous year [3]. - The consensus EPS estimate has been revised down by 8.61% over the last 30 days, indicating a bearish sentiment among analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a negative Earnings ESP of -3.69% for Watsco, suggesting analysts have become more pessimistic about the company's earnings prospects [12]. - Watsco currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, Watsco was expected to earn $4.21 per share but only achieved $3.98, resulting in a surprise of -5.46% [13]. - Over the past four quarters, Watsco has only beaten consensus EPS estimates once [14]. Comparative Industry Analysis - Ingersoll Rand, another player in the manufacturing industry, is expected to post earnings of $0.91 per share, indicating an 8.3% year-over-year increase, with revenues projected at $2.05 billion, up 7.8% [18][19]. - Ingersoll Rand has a positive Earnings ESP of +0.82% and a Zacks Rank of 3, suggesting a higher likelihood of beating consensus EPS estimates [19][20].