Brief: Watsco Q2 Sales USD 2,060 Million Vs. IBES Estimate USD 2,234 Million

Watsco

30/07/2025 12:30

Overview

Watsco Q2 revenue falls 4% to $2.06 bln, missing analyst expectations

Gross profit rises 4% to record $603 mln, driven by margin expansion

Co navigates A2L refrigerant transition, impacting sales volumes

Result Drivers

A2L TRANSITION - Transition to A2L refrigerants impacted sales volumes, contributing to revenue decline

PRICING TECHNOLOGIES - Margin expansion driven by pricing technologies and OEM pricing actions

EXPENSE INCREASES - Higher SG&A expenses due to labor and transportation costs related to A2L transition and acquisitions

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$2.06 bln
$2.23 bln (12 Analysts)
Q2 EPS
$4.52


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 13 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the electrical components & equipment peer group is "buy."

Wall Street's median 12-month price target for Watsco Inc is $480.00, about 3.2% above its July 29 closing price of $464.82

The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 34 three months ago

Press Release: ID:nGNX4rTPP5

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)