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MIAMI - On Tuesday, Watsco, Inc. (NYSE:WSO) reported better-than-expected fourth quarter results and raised its dividend, sending shares up 3.37% in early trading.
The HVAC/R distributor posted Q4 adjusted earnings per share of $2.37, beating analyst estimates of $2.18. Revenue rose 9% YoY to $1.75 billion, also surpassing expectations of $1.66 billion.
Watsco saw strong growth in residential HVAC equipment sales, which increased 16% in the quarter on double-digit unit growth, new customer acquisition and market share gains. Commercial equipment sales rose 9%.
"Watsco had a terrific fourth quarter, achieving record sales and earnings, improved operating efficiency, expanded margins and record cash flow," said Albert H. Nahmad, Watsco’s Chairman and CEO.
The company also announced an 11% increase to its annual dividend to $12.00 per share, marking the 51st consecutive year of dividend payments.
Looking ahead, Watsco cited the ongoing transition to A2L refrigerants as providing "incremental opportunities for growth and share gains" as its technology platforms gain more adoption.
For the full year 2024, Watsco reported a 5% increase in sales to a record $7.62 billion. Operating income was $782 million with a 10.3% operating margin.
The company ended the year with $782 million in cash and short-term investments and no debt on its balance sheet.
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