Watsco Reports Strong Q3 Performance; CEO Expresses Confidence In Future Growth

Watsco, Inc. WSO reported Q3 sales of $2.127 billion, beating the analyst consensus of $2.050 billion. Sales grew over 4% Y/Y.

The company registered an EPS of $4.35 in Q3, beating the analyst consensus of $4.27.

The company registered a 3% increase in gross profit to a record $567 million (gross margin of 26.7%).

Watsco's operating income rose 9% Y/Y to a record $257 million (8% increase on a same-store basis), with a 50 basis-point increase in operating margin to a record 12.1%.

The company saw a 6% growth in HVAC equipment (70% of sales), a 3% decline in other HVAC products (26% of sales), and a 9% growth in commercial refrigeration products (4% of sales).

On Sept. 30, 2023, the company had $175 million in cash, $106 million in borrowings, and $2.7 billion of shareholders' equity. 

Albert Nahmad, Chairman and CEO commented: "Looking ahead, our confidence in our business remains strong, particularly given the proven strength of our entrepreneurial culture, substantial scale, technological advantage and financial resources. We are also pleased with the acquisition of Gateway Supply Company and we welcome their employees and customers to the Watsco family. We look forward to supporting them and their growth strategy."

Price Action: WSO shares are trading lower by 2.89% to $357.61 on the last check Thursday.

Now Read: UAW President Says Tesla Is Not The Enemy In Auto Strikes: 'They're The UAW Members Of The Future'

Photo: Shutterstock

 

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