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Watsco (WSO) To Report Earnings Tomorrow: Here Is What To Expect

WSO Cover Image

Equipment distributor Watsco (NYSE: WSO) will be reporting results tomorrow before the bell. Here’s what you need to know.

Watsco beat analysts’ revenue expectations by 5.3% last quarter, reporting revenues of $1.75 billion, up 9.4% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ same-store sales and adjusted operating income estimates.

Is Watsco a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Watsco’s revenue to grow 5.6% year on year to $1.65 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $2.26 per share.

Watsco Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Watsco has missed Wall Street’s revenue estimates six times over the last two years.

Looking at Watsco’s peers in the industrial distributors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 2.7%, missing analysts’ expectations by 1.7%, and Fastenal reported revenues up 3.4%, in line with consensus estimates. Richardson Electronics traded down 17.2% following the results while Fastenal was up 7.3%.

Read our full analysis of Richardson Electronics’s results here and Fastenal’s results here.


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