Watsco Plunges 15% After Q2 EPS Misses by 52 Cents, Revenue Falls Short
WSO is trading near its 52-week low of $307.92 (0.4% above the low) on elevated volume (2.4× avg).
Summary
Watsco's Q2 earnings missed badly — EPS of $4.00 vs. $4.52 expected, on revenue of $2.1B that also came in light. The stock is down more than 15% midday, pushing it near its 52-week low. Gross margin compressed to 27.5% from 29.3% a year ago, and net income fell 11%. CEO Nahmad pointed to improving end-market stability, but the numbers show a tough quarter. This follows the Jackson Supply acquisition closing in June, which adds distribution scale but hasn't yet offset the margin pressure. The sharp sell-off reflects disappointment after a year-to-date decline that already had the stock under pressure.
At the time of this announcement, WSO was trading at $309.18 on NYSE in the Trade & Services sector, with a market capitalization of approximately $12.6B. The 52-week trading range was $307.92 to $478.48. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.