Watsco Stock Price, News & Analysis

Watsco, Inc. (WSO) reported its Q1 2023 results demonstrating a 2% increase in sales to a record $1.55 billion, despite a slight decline in gross profit, which was $448 million at a 28.9% margin. Operating income decreased by 4% to $165 million. The company's EPS fell to $2.83 compared to $2.90 in Q1 2022. Watsco highlighted ongoing investments in technology improving contractor engagement and expanding its market share. The firm remains confident in its ability to navigate regulatory challenges and seasonal sales fluctuations, boosting heat pump sales by 7% and maintaining strong cash flow with a $54 million increase. The company’s financial health is reflected in its net borrowings of $57 million and a 53% increase in its annual dividend rate. Future growth is anticipated from industry trends toward energy efficiency and technological advancements.

Watsco, Inc. (NYSE: WSO) will host a conference call on April 20, 2023, at 10:00 a.m. EDT to discuss its first quarter financial results. The results will be released before market open on the same day. The call will include prepared remarks followed by a Q&A session with senior management. Investors are encouraged to pre-register for immediate access using the provided link. Watsco operates a significant distribution network for heating, air conditioning, and refrigeration products across the U.S., Canada, Mexico, and Puerto Rico, serving over 350,000 contractors annually through its 675 locations. The company highlights its role in reducing CO2 emissions, claiming to have averted 15.8 million metric tons of CO2e emissions from 2020 to 2022 through the sale of energy-efficient HVAC systems.

Watsco, Inc. (NYSE: WSO) declared a quarterly cash dividend of $2.45 per share, payable on April 28, 2023, to shareholders of record by April 17, 2023. This marks the 49th consecutive year of dividend payments, as Watsco continues to prioritize sharing cash flow with shareholders while maintaining a conservative financial approach. The company plays a crucial role in combating climate change by selling high-efficiency HVAC systems, which have reportedly averted 15.8 million metric tons of CO2e emissions since 2020, equating to the removal of approximately 3.4 million gas-powered vehicles from the road.

Watsco, Inc. (NYSE: WSO) has secured a $600 million unsecured revolving credit facility, replacing its previous $560 million facility. This new five-year agreement, led by Bank of America, aims to support working capital, acquisitions, dividends, and other general purposes while bearing interest linked to the Secured Overnight Financing Rate (SOFR). The facility offers increased borrowing capacity and covenant flexibility, catering to Watsco's seasonal working capital needs. CEO Albert H. Nahmad emphasized the importance of low-cost debt for growth, while the company's distribution network remains vital for HVAC systems that help reduce CO2 emissions and enhance energy efficiency.

Watsco (NYSE: WSO) announced that Barry Logan, Executive Vice President, will present at J.P. Morgan's 2023 Industrials Conference on March 15, 2023, at 9:40 a.m. (EDT). The presentation will be available via live webcast on Watsco's Investor Relations webpage. As the largest HVAC/R distribution network in North America, Watsco serves over 350,000 contractors through its 673 locations. The company emphasizes its role in combating climate change, having prevented an estimated 15.8 million metric tons of CO2e emissions since 2020 through the sale of high-efficiency HVAC systems, equivalent to removing 3.4 million gas-powered vehicles from the road for a year.