Watsco Q2 Profit Drops 11% as Margin Pressure Offsets Revenue Growth
WSO is trading near its 52-week low of $323.05 (9.8% above the low).
Summary
Watsco's Q2 earnings fell 11% to $4.00 per share, missing last year's $4.52 despite a 2% revenue increase to $2.1 billion. Gross margin compressed to 27.5% from 29.3%, signaling cost pressures or mix shift that eroded profitability. This follows the company's recent acquisition of Jackson Supply and a $187 million secondary offering by selling shareholders in June. The margin decline is the key concern — revenue growth alone won't satisfy if profitability keeps slipping.
At the time of this announcement, WSO was trading at $354.58 on NYSE in the Trade & Services sector, with a market capitalization of approximately $14.9B. The 52-week trading range was $323.05 to $491.55. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: dpa-AFX.