Watsco Inc. (WSO, Financial) reported first-quarter revenue of $1.53 billion, falling short of market expectations, which were set at $1.66 billion. Despite the revenue shortfall, the company remains optimistic about its ongoing transition to new A2L products. This shift is anticipated to positively impact more than half of the products offered by Watsco, providing substantial benefits to its clientele.
Chairman and CEO Albert Nahmad highlighted the promising sales momentum, improved profit margins, and increased efficiency within its core replacement market. Additionally, the company experienced a strong quarter in terms of customer acquisition. Ahead of the peak selling season, Watsco has strategically built a robust inventory to support its customers, enabling them to remain competitive and potentially increase their market share as the product transition progresses.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for Watsco Inc (WSO, Financial) is $501.01 with a high estimate of $560.00 and a low estimate of $424.12. The average target implies an downside of 0.43% from the current price of $503.16. More detailed estimate data can be found on the Watsco Inc (WSO) Forecast page.
Based on the consensus recommendation from 17 brokerage firms, Watsco Inc's (WSO, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Watsco Inc (WSO, Financial) in one year is $391.05, suggesting a downside of 22.28% from the current price of $503.16. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Watsco Inc (WSO) Summary page.
