Watsco Earnings: Everything You Must Know Now

Watsco Inc. (NYSE:WSO) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

Watsco Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 65.55% to $0.41 in the quarter versus EPS of $0.39 in the year-earlier quarter.

Revenue: Rose 18.53% to $765.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Watsco Inc. reported adjusted EPS income of $0.41 per share. By that measure, the company missed the mean analyst estimate of $0.47. It beat the average revenue estimate of $739.34 million.

Quoting Management: Albert Nahmad, Watsco’s Chairman and Chief Executive Officer stated: “2012 was an excellent year for Watsco. We continued our expansion into international markets, which now account for 16% of sales and we believe represent an important source of growth for Watsco in the future. Domestically, we generated sales growth and gained market share in both residential and commercial HVAC equipment markets and began to see a lift in sales of HVAC supplies as residential new construction is emerging in our markets. We expect 2013 to be another record year.”

Key Stats (on next page)…

Revenue decreased 25.01% from $1.02 billion in the previous quarter. EPS decreased 65.55% from $1.19 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.32 to a profit $0.33. For the current year, the average estimate has moved down from a profit of $3.06 to a profit of $3.05 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)