Watsco Earnings Preview: Get Ahead of the Analysts

Watsco (NYSE:WSO) will report earnings before markets open on Thursday, July 18th. Watsco, Inc. distributes air conditioning, heating, and refrigeration equipment, as well as related parts and supplies. The Company operates various locations in the United States, with primary markets in the Sunbelt.

Here is your Cheat Sheet to Watsco Earnings:

Earnings Expectations: Analysts expect earnings of $1.40 per share on revenues of $1.10 billion. Currently, the company’s P/E ratio stands at 31.91.

Analyst Trends:

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 $1.38 to a profit $1.4. For the current year, the average estimate is a profit of $3.71, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Watsco has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 1,700 2,002 2,845 2,978 3,432
Diluted EPS ($) 2.18 1.40 2.49 2.74 2.70

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 1,011.80 1,020.86 765.54 713.63
Diluted EPS ($) 1.15 1.19 0.04 0.39

Past Performance:
Watsco has missed analyst estimates 3 times in the past four quarters. Shareholders could expect a bust if the company misses estimates.

“E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our successful CHEAT SHEET investing framework. Don’t waste another minute – click here to discover our CHEAT SHEET stock picks now!

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