Watsco Earnings: Here’s Why Shares are Up Now

Watsco Inc. (NYSE:WSO) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.4%.

Watsco Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 28.7% to $1.48 in the quarter versus EPS of $1.15 in the year-earlier quarter.

Revenue: Rose 10.74% to $1.12 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Watsco Inc. reported adjusted EPS income of $1.48 per share. By that measure, the company beat the mean analyst estimate of $1.40. It beat the average revenue estimate of $1.1 billion.

Quoting Management: Albert Nahmad, Watsco’s President & CEO stated: “Our second quarter performance produced the highest sales and the greatest profits of any quarter in Watsco’s history. We delivered strong earnings growth and margin expansion from a combination of solid sales growth, better selling margins and operating efficiencies. We remain focused on our fundamentals – gaining share for our supplier partners, improving operating efficiency and having the products and people in place to best serve our customers.”

Key Stats (on next page)…

Revenue increased 57.01% from $713.63 million in the previous quarter. EPS increased 279.49% from $0.39 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 $1.37 to a profit $1.40. For the current year, the average estimate has moved up from a profit of $3.67 to a profit of $3.71 over the last ninety days.

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

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