Watsco(US:WSO) Financial Modeling Prep·2026-02-13 19:00Core Viewpoint - Watsco Inc. is facing a challenging market environment, with expected declines in earnings and revenue for the upcoming quarterly earnings report [2][6]. Financial Performance Expectations - Watsco's earnings per share (EPS) is estimated at $1.94, reflecting an 18.1% decline compared to the same period last year [2][6]. - Revenue is projected to decrease by 8.3% year-over-year to $1.62 billion [2][6]. - The consensus EPS estimate has been revised downwards by 8.6% over the past 30 days, indicating a reevaluation by analysts [2][6]. Market Impact - The upcoming earnings report could significantly impact Watsco's stock price, with potential upward movement if results exceed expectations, or a decline if estimates are missed [3]. Financial Metrics - Watsco has a price-to-earnings (P/E) ratio of approximately 28.63 and a price-to-sales ratio of about 2.28, reflecting the market's valuation of its earnings and revenue [4][6]. - The enterprise value to sales ratio is around 2.29, and the enterprise value to operating cash flow ratio is approximately 31.01 [4]. - The company maintains a strong liquidity position with a current ratio of approximately 3.84, indicating its ability to cover short-term liabilities [5]. - Watsco's debt-to-equity ratio is relatively low at 0.16, suggesting a conservative use of debt in its capital structure [5].