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Watsco Reports Lower Q2 2026 Earnings Despite Slightly Higher Sales
Watsco, Inc. reported second-quarter 2026 sales of US$2,104.86 million, with net income of US$163.34 million and diluted EPS from continuing operations of US$4, both lower than a year earlier despite slightly higher sales. International markets, including Canada and Latin America/Caribbean, contributed under 9% of revenue and came in below analyst expectations, underscoring the current softness of Watsco's non-U.S. operations. The company also maintained its quarterly cash dividend at US$3.30 per share following a 10% increase in April, highlighting management's focus on shareholder returns even as earnings softened. The results reinforce that near-term margin stabilization remains the key catalyst, while risks persist from tariffs, refrigerant issues, and weak international demand.
Simply Wall St·15dRead more ▾
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Watsco Stock Crashes 15% After Q2 Earnings Miss
Watsco stock tumbled 15.3% through 10:45 a.m. ET Wednesday after the HVAC distributor reported second-quarter earnings that fell short of analyst expectations. Analysts had forecast earnings of $4.41 per share on more than $2.1 billion in sales, but Watsco earned $4 per share and its sales came in just below estimates. Revenue grew only 2% year over year, while gross profit declined and operating costs rose, leading to a 12% drop in earnings. The company recently acquired Jackson Supply and continues to seek additional acquisitions to spur growth in the fragmented North American HVAC market.
The Motley Fool·28dRead more ▾
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Watsco to Host Q2 2026 Earnings Call on July 29
Watsco Inc will host a conference call at 10:00 AM ET on July 29, 2026, to discuss its second quarter 2026 earnings results. The live webcast can be accessed through the company's website at www.watsco.com. To listen by phone, dial 844-883-3908 in the US or 412-317-9254 internationally.
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Watsco reports second-quarter profit decline to $152.6 million
Watsco, Inc. announced a decline in second-quarter profit. The company's earnings totaled $152.603 million, or $4.00 per share, compared with $171.454 million, or $4.52 per share, in the same period last year. Revenue for the quarter rose 2.0% to $2.104 billion from $2.062 billion a year earlier.
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Watsco to Report Q2 Results Tomorrow
Watsco is set to report its second-quarter earnings this Wednesday before the bell. The market expects revenue to grow 4% year on year, reversing a 3.6% decline in the same quarter last year. Analysts have largely maintained their estimates over the past 30 days, though the company has missed Wall Street revenue expectations multiple times in the last two years. Watsco shares are down 11.3% over the past month, heading into earnings with an average analyst price target of $428.70 compared to the current share price of $364.20.
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Watsco Sets July 29 Earnings Call Amid 12.2% Undervaluation Narrative
Watsco has scheduled a conference call for July 29, 2026, to discuss its second quarter results. The HVAC distributor's stock recently closed at $371.91, down 13.56% over the past 90 days but with a total shareholder return of 18.36% over the past year. A narrative fair value estimate of $423.55 suggests the shares are 12.2% undervalued, supported by a strong balance sheet with $430 million in cash, no debt, and over $3 billion in equity. However, the current price-to-earnings ratio of 31x exceeds the US Trade Distributors industry average of 25.6x and the peer average of 19.6x, indicating higher valuation risk if growth assumptions are questioned.
Simply Wall St·40dRead more ▾
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StockStory flags Watsco, Illumina, and First Horizon as mid-cap stocks to avoid
StockStory has identified three mid-cap stocks that raise concerns for investors. Watsco, with a market cap of $15.43 billion, saw flat sales over the last two years and a 3.7% annual decline in earnings per share, partly due to shareholder dilution. Illumina, valued at $25.15 billion, also experienced flat sales over the same period and posted a return on capital of just 0.7%, signaling difficulty in finding profitable growth. First Horizon, a $11.86 billion bank, reported slower net interest income growth than peers and earnings per share growth of only 5.7% annually over five years, with tangible book value per share growth expected to slow to 5.3%.
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Watsco Declares $3.30 Quarterly Dividend
Watsco's Board of Directors has declared a regular quarterly cash dividend of $3.30 per share on its Common and Class B common stock. The dividend is payable on July 31, 2026 to shareholders of record as of July 16, 2026. Watsco has paid dividends for 52 consecutive years and plans to share cash flow while maintaining a conservative balance sheet. The company is the largest distributor in the North American HVAC/R market and serves approximately 74,000 contractors digitally.
GlobeNewswire·56dRead more ▾
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Watsco Stock Up 22% YTD, Yields Over 3% as Dividend Raised 10%
Watsco shares have gained 22% year-to-date in 2026, outperforming the S&P 500's 8% rise, while offering a forward dividend yield above 3%. The Miami-based HVAC distributor's board approved a 10% quarterly dividend increase to $3.30 per share in April, lifting the annual rate to $13.20 and a forward yield of 3.29%. March quarter revenue of $1.53 billion beat estimates by 3.4%, and adjusted earnings per share of $1.87 topped consensus by 10.7%, supported by an adjusted EBITDA margin of 8.4%. Watsco also closed the acquisition of Jackson Supply Company, a distributor with $230 million in 2025 sales and 25 locations across Sun Belt states, strengthening its footprint in high-growth markets. Analysts maintain a consensus Hold rating with an average 12-month price target of $420.80, implying about 2% upside from current levels near $411.
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StockStory Highlights Apple and Analog Devices as Opportunities, Warns on Watsco
StockStory identifies Apple and Analog Devices as stocks poised to prove Wall Street wrong, while flagging Watsco as facing legitimate challenges. Apple, trading at $294.65 per share with a forward P/E of 32.6x, benefits from enduring brand strength and elite operating margins despite sluggish recent growth. Analog Devices, at $410.08 per share and a 32.2x forward P/E, stands out for its 15.5% annual revenue growth over five years and best-in-class 62% gross margin. Watsco, priced at $387.69 with a 31.2x forward P/E, is weighed down by stagnating sales, 3.7% annual EPS declines from share issuance, and diminishing returns on capital.
StockStory·63dRead more ▾
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Watsco Acquires Jackson Supply Company, Adding 25 Sunbelt Locations
Watsco Inc. has completed its acquisition of Jackson Supply Company, a major independent HVAC distributor in the Sunbelt. Jackson Supply generated $230 million in sales in 2025 and operates 25 locations across Texas, Louisiana, Tennessee, Alabama, Mississippi, Oklahoma, and Arizona, serving approximately 5,000 contractor customers. The acquired business will retain its name, vendor relationships, brand identity, and existing leadership team under Jim Durrett. Watsco's Chairman and CEO Albert H. Nahmad highlighted Jackson Supply's five decades of entrepreneurial success, and the deal supports Watsco's goal of expanding its share of the estimated $74 billion North American HVAC/R distribution market.
Insider Monkey·70dRead more ▾