NYSE$WSO

Watsco Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Watsco achieved record sales and net income, enhanced operating efficiency, and generated strong cash flow.

Watsco reported a 2% increase in sales, reaching a record $2.16 billion for the third quarter of 2024. The company's net income remained flat at $171 million, and earnings per share declined by 3% to $4.22. The company sees potential for further improving productivity and is gratified that its focus on the balance sheet has produced record cash flow.

  • Sales increased 2% to a record $2.16 billion (flat on a same-store basis).
  • Operating income decreased 2% to $250 million (11.6% operating margin).
  • Net income attributable to Watsco was $171 million, flat versus last year.
  • Earnings per share declined 3% to $4.22.

Headline financials

Total Revenue

$2.16B

Previous: $2.13B+1.6%
EPS

$4.22

Previous: $4.35-3.0%
Gross Profit Margin

26.2%

No prior period
Operating Margin

11.6%

No prior period
Capital Expenditures

-$22.1M

Previous: -$25.5M+13.5%
Free Cash Flow

$149M

Previous: $145M+2.4%
Net Income

$171M

Previous: $171M+0.0%
Operating Income

$250M

Previous: $257M-2.5%
Gross Profit

$566M

Previous: $567M-0.1%
Cash & Equivalents

$294M

Previous: $175M+68.2%
Total Assets

$4.52B

Previous: $4.04B+11.8%
Stock-Based Comp

$8.55M

Previous: $7.26M+17.7%

Revenue & EPS history

Watsco · Revenue · Quarterly

$2.16B

Q3 2024+1.6%vs Q3 2023
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Forward guidance

Watsco believes the market environment for HVAC products stabilized this year, and they look forward to helping their customers navigate next year’s regulatory transition toward the new A2L systems.

Tailwinds

  • Market environment for HVAC products stabilized this year.
  • Helping customers navigate next year’s regulatory transition toward the new A2L systems.
  • Regulatory change will ultimately impact approximately 60% of sales.
  • Offers contractor customers the opportunity to upgrade older HVAC systems with new products.
  • New products are both more energy-efficient and environmentally-friendly.

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 Q3 2024

Historical avgQ3 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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