Watsco, Inc. (WSO) reported first quarter earnings per share of $0.24, up 14% year over year and on par with the Zacks Consensus Estimate. Total revenue increased 19% year over year to $634 million, outpacing the Zacks Consensus Estimate of $581 million.
Watsco has acquired Carrier's Canada HVAC distribution network, which will be accretive to its revenue and earnings. Watsco has great potential in the replacement market of air conditioners and heating systems in the U.S, as nearly 89 million of them are more than 10 years old.
Furthermore, backed by its solid balance sheet, Watsco can continue to increase its dividend and make additional investments going forward. We have thus upgraded our recommendation from Neutral to Outperform with a target price of $86.00.
WATSCO INC (WSO): Free Stock Analysis Report
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