NYSE$WSO

Watsco Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Watsco reported a 1% increase in sales to a record $1.60 billion for Q4 2023, with EPS at $2.06.

Watsco's Q4 2023 results showed a 1% increase in sales, reaching a record $1.60 billion. EPS was reported at $2.06, compared to $3.55 in the previous year. The company experienced a 40% increase in operating cash flow, achieving a record $299 million.

  • Sales increased by 1% to a record $1.60 billion.
  • Operating cash flow increased by 40% to a record $299 million.
  • EPS was $2.06, compared to $3.55 in the previous year.
  • Gross profit was $414 million with a gross margin of 25.8%.

Headline financials

Total Revenue

$1.6B

Previous: $1.58B+1.4%
EPS (adj)

$2.06

Previous: $3.55-42.0%
HVAC Equipment % of Sales

69.0%

No prior period
Other HVAC Products % of Sales

27.0%

No prior period
Commercial Refrigeration % of Sales

4.0%

No prior period
Capital Expenditures

-$8.67M

Previous: $9.13M-195.0%
Net Income

$97.7M

Previous: $138M-29.0%
Operating Income

$108M

Previous: $137M-21.5%
Gross Profit

$414M

Previous: $434M-4.4%
Stock-Based Comp

$9.21M

Previous: $6.8M+35.3%

Revenue & EPS history

Watsco · Revenue · Quarterly

$1.6B

Q4 2023+1.4%vs Q4 2022
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Forward guidance

Watsco is well-positioned with its entrepreneurial culture, OEM relationships, leading technologies, and financial strength to optimize opportunities from industry catalysts such as regulatory changes, electrification, and the growth of ductless HVAC systems.

Tailwinds

  • Scale and entrepreneurial culture provide competitive advantages.
  • Strong OEM relationships help optimize opportunities.
  • Leading technologies enhance market position.
  • Financial strength supports growth and investments.
  • Benefiting from regulatory changes and industry catalysts.

Headwinds

  • Softer market conditions compared to previous years.
  • Decline in OEM shipments of unitary HVAC systems.
  • Seasonality affects financial results.
  • Competitive conditions within the industry.
  • Potential impacts from economic and regulatory factors.

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 Q4 2023

Historical avgQ4 2023

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro