NYSE$WSO

Watsco Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Watsco's Q2 2024 results reflected record sales, enhanced operating efficiency and strong cash flow, driven by continued customer adoption of industry-leading technologies.

Watsco reported a record $2.1 billion in revenue for Q2 2024, a 7% increase year-over-year, with EPS of $4.49 compared to $4.42 last year. The company's strong cash flow and debt-free balance sheet supported long-term investment and growth.

  • Revenue increased by 7% to a record $2.1 billion, with a 4% increase on a same-store basis.
  • Earnings per share (EPS) increased to $4.49 compared to $4.42 in the previous year.
  • Operating cash flow improved by $100 million compared to the last year.
  • E-commerce sales grew 13% and accounted for 36% of total sales.

Headline financials

Total Revenue

$2.14B

Previous: $2B+6.8%
EPS

$4.49

Previous: $4.42+1.6%
Gross Profit Margin

27.1%

No prior period
Operating Margin

12.6%

No prior period
Capital Expenditures

-$12.3M

Previous: -$15.8M+22.5%
Free Cash Flow

$169M

Previous: $157M+7.8%
Net Income

$181M

Previous: $173M+5.0%
Operating Income

$269M

Previous: $266M+1.2%
Gross Profit

$580M

Previous: $563M+3.0%
Cash & Equivalents

$225M

Previous: $163M+38.3%
Total Assets

$4.4B

Previous: $4.1B+7.1%
Stock-Based Comp

$8.39M

Previous: $6.83M+22.9%

Revenue & EPS history

Watsco · Revenue · Quarterly

$2.14B

Q2 2024+6.8%vs Q2 2023
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Forward guidance

Watsco is well-positioned to invest in future growth opportunities, expand its business, and partner with other family businesses, driven by its strong balance sheet, solid cash flow, technology, and entrepreneurial culture.

Tailwinds

  • Investing in market share opportunities as regulatory change and product transitions unfold.
  • Partnering with other great family businesses in the industry.
  • Scale and technology give confidence in the growth outlook.
  • Technology investments are expected to drive future growth.
  • Company's unique technology investments are expected to drive future growth

Headwinds

  • Effects of supplier concentration
  • Competitive conditions within Watsco’s industry
  • Seasonal nature of sales of Watsco’s products
  • Ability of the Company to expand its business
  • Insurance coverage risks

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+0.2%

Avg return

Earnings day

-0.4%

Avg return

5 days after

+0.8%

Avg return

30 days after

57%

39 / 68 earnings

Positive

+15.3%

Q2 2020

Best reaction

-11.3%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.8%-6.2%-20.2%
Q4 2025+1.0%-1.9%-8.3%
Q3 2025+2.9%+0.8%-3.3%
Q1 2025-11.3%-9.4%-9.5%
Q4 2024+9.7%+3.1%+3.9%
Q3 2024-1.3%-1.0%+14.4%
Q2 2024-2.8%-7.2%-7.3%
Q1 2024+7.4%+8.3%+18.4%
Q4 2023-5.5%-7.1%-3.2%
Q3 2023-5.6%-5.7%+5.9%
Q2 2023-4.9%-4.9%-3.6%
Q1 2023+6.9%+9.3%+6.3%
Q4 2022+5.3%-0.4%-3.8%
Q3 2022+0.8%+5.6%+11.7%
Q2 2022+0.7%+8.3%+15.3%
Q1 2022+1.5%-0.7%-13.9%
Q4 2021-4.8%-4.9%+3.0%
Q3 2021+4.0%+2.5%+5.6%
Q2 2021+4.8%-0.2%-2.4%
Q1 2021+2.6%+3.5%-0.3%
Q4 2020-1.4%-3.0%-1.4%
Q3 2020+3.4%-0.2%+2.0%
Q2 2020+15.3%+14.8%+21.9%
Q1 2020+7.6%+10.4%+11.1%
Q4 2019-1.3%-2.3%-6.8%
Q3 2019+4.7%+6.9%+8.5%
Q2 2019-2.7%+0.6%-0.1%
Q1 2019+6.0%+5.5%+3.9%
Q4 2018-6.3%-5.5%-8.6%
Q3 2018-5.2%-8.3%-3.1%
Q2 2018-9.0%-7.4%-4.1%
Q1 2018-10.0%-9.3%-2.4%
Q4 2017-3.8%-3.8%+2.8%
Q3 2017+1.7%+1.3%+0.8%
Q2 2017-0.4%+0.8%-3.8%
Q1 2017+0.4%-0.5%+1.4%
Q4 2016-5.1%-2.5%-5.1%
Q3 2016-5.0%-4.1%+3.5%
Q2 2016+0.3%+0.8%+2.7%
Q1 2016+1.1%
Q4 2015+12.0%
Q3 2015-8.6%
Q2 2015-1.4%
Q1 2015-2.9%
Q4 2014+6.5%
Q3 2014+5.7%
Q2 2014-5.4%
Q1 2014+5.1%
Q4 2013+0.2%
Q3 2013-1.0%
Q2 2013+1.6%
Q1 2013+2.6%
Q4 2012+4.0%
Q3 2012-0.7%
Q2 2012-10.7%
Q1 2012+0.4%
Q2 2011+0.0%
Q4 2011+0.0%
Q3 2011-2.1%
Q1 2011-1.0%
Q1 2010-1.0%
Q2 2010+1.8%
Q4 2010+1.8%
Q3 2010+0.4%
Q3 2009+0.4%
Q4 2008+2.3%
Q2 2009+2.3%
Q4 2009+2.3%

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