Group 1: Watsco - Watsco's stock has increased by 991% over the last 20 years, with a 272% rise in the previous decade and a 154% increase over the last five years, although it has seen a 4% decline in the past year [5] - The current dividend yield for Watsco is 2.7%, but reinvesting dividends over the last 20 years would yield a total return of 2,020% [6] - Watsco is a leading player in the HVAC industry, consistently acquiring small distributors and integrating them to enhance sales and geographic reach [6][7] - The company utilizes technology to support HVAC contractors, improving operational performance and ensuring long-term growth prospects as demand for HVAC servicing remains strong [7][8] Group 2: Occidental Petroleum - Occidental Petroleum's stock has dropped about 29% over the past year, correlating with a 21.5% decline in oil prices [9][11] - Despite the stock decline, Occidental has shown strong performance with an 18.6% year-over-year increase in oil and gas production and generated $1.2 billion in free cash flow [12] - The company has maintained a conservative 20% payout ratio from 2020 to 2024, indicating a secure dividend despite lower energy prices [15] Group 3: Campbell's Company - Campbell's stock is currently at a 16-year low, primarily due to challenges in integrating acquisitions and generating high-margin sales growth [16][19] - The company has made significant acquisitions totaling $9.5 billion, which exceeds its current market cap of $9.3 billion, leading to concerns about overpayment [18] - Despite struggles, Campbell's generates substantial free cash flow that covers its 5.1% dividend yield, and its forward price-to-earnings ratio is significantly lower than its 10-year median [19][20]

NEW YORK, April 29, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of  Watsco, Inc. (“Watsco” or the “Company”) (NYSE: WSO). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. The investigation concerns whether Watsco and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.  [Click here for information about joining the class action] On April 23, 2025, Wats ...

Financial Data and Key Metrics Changes - Watsco reported a strong first quarter with a 10% increase in sales for the core HVAC replacement business driven by higher volumes and a richer mix of high-efficiency systems [6][9] - Gross margins improved following the launch of new systems, with the company aiming for a long-term gross profit margin goal of 30% [34][9] - The company has $430 million in cash, no debt, and over $3 billion in equity, indicating a strong balance sheet [9] Business Line Data and Key Metrics Changes - The core HVAC replacement business saw a 10% increase, while the commercial products segment experienced a decline of around 10% due to the transition from 410A to 454B refrigerants [6][71] - The residential new construction market was noted to be softer year-over-year, but the company believes it has not lost market share in this segment [30][26] Market Data and Key Metrics Changes - Domestic sales accounted for 91% of first-quarter sales, with mid-single-digit growth observed in the domestic market [58] - International sales, which represent 9% of total sales, were noted to be weaker, with greater uncertainty in Canada and Latin America [11] Company Strategy and Development Direction - Watsco is transitioning to the new A2L refrigerant systems, which are expected to impact around 55% of total sales and are seen as beneficial for business in the long term [4][5] - The company emphasizes its scale, technology, and relationships with OEM partners to adapt quickly to changing market conditions [12][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming selling season, expecting benefits from the new A2L products to materialize in the stronger second and third quarters [9][4] - The company is closely monitoring the potential impact of proposed tariffs and is collaborating with OEM partners on pricing actions [11][9] Other Important Information - Watsco raised its annual dividend by 11% to $12 per share, marking the 51st consecutive year of dividend payments [10] - The company is actively training customers and updating technology platforms to support the transition to new refrigerant systems [5] Q&A Session Summary Question: Insights on residential sales growth - Management indicated that most of the first-quarter growth was from 410A, with a transition to A2L products expected in the second quarter [18][19] Question: Impact of price increases on gross margin - Management noted that the first quarter saw clean pricing without significant price increases, with gross margin improvements primarily due to a favorable segment mix [22][21] Question: International sales performance - Management acknowledged that international sales were weak but not significant enough to impact overall performance, attributing some of the softness to fewer selling days in the quarter [27][28] Question: Transition to A2L refrigerants - Management confirmed that there were no significant delays in the transition to A2L products and that the market is adapting well [80][81] Question: Price increase mechanisms - Management clarified that most pricing actions are price increases rather than surcharges, indicating a stable pricing environment [138][135] Question: Supply chain issues with refrigerants - Management acknowledged shortages of 454B refrigerant due to container issues but emphasized that there is no shortage of the refrigerant itself [96][97] Question: Consumer behavior regarding repairs versus replacements - Management indicated that both repair and replacement markets are expected to grow, with a positive outlook on energy-efficient product sales [105][110]