Watsco (NYSE:WSO) Shares Gap Down After Earnings Miss

Watsco, Inc. (NYSE:WSO) gapped down prior to trading on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $484.77, but opened at $454.91. Watsco shares last traded at $469.99, with a volume of 38,082 shares traded.

The construction company reported $4.22 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.73 by ($0.51). The company had revenue of $2.16 billion for the quarter, compared to analyst estimates of $2.24 billion. Watsco had a return on equity of 18.55% and a net margin of 7.02%. Watsco’s quarterly revenue was up 1.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $4.35 earnings per share.

Watsco Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 31st. Investors of record on Wednesday, October 16th will be given a $2.70 dividend. The ex-dividend date is Wednesday, October 16th. This represents a $10.80 annualized dividend and a dividend yield of 2.26%. Watsco’s dividend payout ratio is presently 83.08%.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the company. JPMorgan Chase & Co. boosted their target price on Watsco from $420.00 to $425.00 and gave the stock a “neutral” rating in a report on Wednesday, July 31st. Robert W. Baird dropped their price objective on Watsco from $550.00 to $540.00 and set an “outperform” rating for the company in a research report on Thursday.

Hedge Funds Weigh In On Watsco

Hedge funds have recently made changes to their positions in the stock. EntryPoint Capital LLC raised its position in shares of Watsco by 100.0% during the first quarter. EntryPoint Capital LLC now owns 58 shares of the construction company’s stock worth $25,000 after acquiring an additional 29 shares during the last quarter. Quarry LP acquired a new stake in Watsco during the second quarter worth approximately $26,000. ORG Partners LLC acquired a new stake in Watsco during the first quarter worth approximately $31,000. Tortoise Investment Management LLC grew its stake in Watsco by 76.2% during the second quarter. Tortoise Investment Management LLC now owns 74 shares of the construction company’s stock worth $34,000 after purchasing an additional 32 shares during the period. Finally, Salomon & Ludwin LLC grew its stake in Watsco by 52.6% during the first quarter. Salomon & Ludwin LLC now owns 87 shares of the construction company’s stock worth $38,000 after purchasing an additional 30 shares during the period. 89.71% of the stock is currently owned by institutional investors.

Watsco Stock Up 2.5 %

The company has a quick ratio of 1.55, a current ratio of 3.21 and a debt-to-equity ratio of 0.01. The firm has a 50 day moving average of $481.96 and a 200 day moving average of $473.32. The firm has a market cap of $19.27 billion, a price-to-earnings ratio of 36.78 and a beta of 0.88.

Watsco Company Profile

Watsco, Inc, together with its subsidiaries, engages in the distribution of air conditioning, heating, refrigeration equipment, and related parts and supplies in the United States and internationally. The company distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment.