- Watsco’s 1Q EPS was $2.17, which missed the estimated $2.28 and is lower than the $2.83 reported in the same quarter last year.
- The revenue of $1.56 billion, showing a 0.9% increase from the previous year, fell short of the $1.59 billion estimate.
- Operating margin stood at 8.1%, less than the 10.6% from the previous year and also lower than the estimated 8.76%.
- Gross margin was 27.5%, a decrease from last year’s 28.9%, albeit higher than the estimated 26.8%.
- In terms of market sentiment, there are 3 buys, 7 holds, and 3 sells for Watsco.
A look at Watsco Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
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 distributor of air conditioning, heating, and refrigeration equipment, shows a promising long-term outlook based on its Smartkarma Smart Scores. With a strong Growth score of 4, the company is positioned for future expansion and development. This indicates potential opportunities for growth and increased market presence over time. Additionally, Watsco Inc demonstrates solid Resilience and Momentum scores, showing its ability to withstand market challenges and maintain consistent performance. While the Value and Dividend scores are slightly lower, the company’s overall outlook is positive, supported by its strong performance in key areas.
Operating primarily in the Sunbelt region of the United States, Watsco, Inc. is well-positioned to capitalize on its market presence and distribution network. The company’s focus on distributing essential equipment and supplies aligns with increasing demand in its target markets. With a balanced combination of growth potential, resilience, and momentum, Watsco Inc stands as a reliable player in the industry. Investors looking for a company with a robust long-term outlook may find Watsco Inc an attractive option, considering its strategic positioning and consistent performance across key factors.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
