Factors Setting The Tone For Watsco (WSO) Earnings In Q4
Zacks Investment Research | Feb 11, 2020 10:25PM ET
Watsco, Inc. (NYSE:WSO) is scheduled to report fourth-quarter 2019 results on Feb 13. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 2.2%.
Q4 Expectations
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.01, suggesting a decline of 1% from the year-ago quarter. Over the past 30 days, the company’s earnings estimates have been stable. For quarterly revenues, the consensus mark is pegged at $1,082 million, indicating an improvement of 9.1% from the prior-year reported figure.
Factors Likely to Impact Q4 Results
Technology deployment, strategic buyouts and robust performance of Sunbelts markets are likely to have benefited Watsco’s fourth-quarter performance. The company has been deploying technology that improves order fill rates with speed and accuracy. It has the industry’s largest database of digitized product information, with more than 800,000 SKUs. Moreover, technology deployment is likely to have driven the company’s e-commerce sales in the quarter to be reported.
Moreover, Watsco, which shares space with Lennox International Inc. (NYSE:LII) , has significant prospect in the replacement and heating equipment market. Increase in demand for HVAC equipment (heating, ventilating and air conditioning) is likely to have aided the company’s the fourth-quarter performance.
However, higher material cost and intense competition are likely to have weighed on the company’s fourth-quarter performance.
Watsco, Inc. Price and EPS Surprise
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