Watsco Q1 revenue beats estimates on e-commerce growth

Watsco

28/04/2026 12:40

Overview

US HVAC distributor's Q1 revenue was flat yr/yr, beating analyst expectations

Adjusted EPS for Q1 fell 3% yr/yr

Company to acquire Jackson Supply, a major Sunbelt HVAC distributor

Outlook

Watsco expects improved industry conditions and growth prospects as 2026 unfolds

Company anticipates more conventional working capital trends and better inventory turns going forward

Acquisition of Jackson Supply expected to add scale and diversification in Sunbelt markets

Result Drivers

A2L TRANSITION - Shift to A2L refrigerant products led to higher average selling prices but lower unit volumes

E-COMMERCE GROWTH - E-commerce sales grew 16% in Q1, contributing to customer engagement and sales mix

OPERATING EFFICIENCY - Flat SG&A expenses reflected improved operating efficiency and a simpler business environment

Company press release: ID:nGNX3HJ02F

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$1.53 bln
$1.49 bln (10 Analysts)
Q1 EPS
$1.87


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "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 $425.00, about 7% below its April 27 closing price of $456.86

The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 26 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)