Today's Trend
Watsco, Inc. (NYSE: WSO) shares have been under pressure as the latest Zacks Research revisions were mostly negative for near- and medium-term earnings expectations. The changes follow Watsco’s recent quarterly results, which missed analyst EPS and revenue estimates, adding to investor concerns about growth and profitability.
- Zacks raised its EPS forecast for Q1 2027 to $1.93 from $1.92 and Q1 2028 to $2.05 from $1.93. Its FY2028 estimate also increased to $15.26 from $14.93, suggesting analysts still see longer-term earnings growth potential. Watsco stock information
- The firm maintained estimates of $13.53 EPS for FY2027 and $15.26 for FY2028, while its current full-year consensus reference stands at approximately $12.43 per share. The revisions indicate a mixed outlook rather than a broad change in the long-term investment thesis.
- Zacks cut its FY2026 EPS forecast to $12.21 from $12.56 and lowered Q3 2026 EPS to $4.21 from $4.29 and Q4 2026 EPS to $2.13 from $2.15. These reductions point to softer near-term earnings expectations.
- Estimates were also reduced for Q2 2027 to $4.61 from $4.75, Q3 2027 to $4.65 from $4.69, and FY2027 to $13.53 from $13.70. The repeated cuts may weigh on sentiment, particularly because Watsco already trades at a meaningful earnings multiple despite its recent earnings miss.
Overall, the revisions are modest individually but skew negative for the periods investors are likely to focus on first. The improved FY2028 outlook provides some support, yet the near-term estimate reductions help explain why WSO is declining and remains well below its longer-term moving averages.