- Watsco’s Q2 earnings per share (EPS) were $4.49, missing the estimate of $4.73.
- EPS compared to the previous year’s $4.42.
- Revenue for Q2 was $2.14 billion, up 6.8% year-over-year, but below the estimate of $2.18 billion.
- Operating margin for the quarter was 12.6%, down from 13.3% the previous year, and below the estimate of 12.9%.
- Gross margin stood at 27.1%, lower than last year’s 28.1% and below the estimated 27.5%.
- Albert H. Nahmad, Watsco’s Chairman and CEO, mentioned the company’s pleasure with the results, noting record sales, strong cash flow, and an improved balance sheet.
- Analyst recommendations for Watsco include 3 buys, 7 holds, and 3 sells.
A look at Watsco Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Watsco Inc, a company distributing air conditioning, heating, and refrigeration equipment, shows a promising long-term outlook based on its Smartkarma Smart Scores. With a strong momentum score of 5, Watsco Inc is displaying positive performance trends that bode well for its future growth. Additionally, the company has solid scores in Growth and Resilience, both at 4, indicating a healthy potential for expansion and a stable operational framework. While the Value score is at 2 and the Dividend score at 3, the overall outlook for Watsco Inc seems positive, supported by its robust scores in critical areas.
Operating mainly in the Sunbelt region of the United States, Watsco Inc has positioned itself well for long-term success. The combination of its distribution of essential equipment and strong Smartkarma Smart Scores highlights the company’s potential for sustained growth and resilience in the industry. Investors may find Watsco Inc an attractive prospect based on its favorable momentum, growth prospects, and operational strength, as indicated by its Smart Scores.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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