Yahoo Finance Earnings To Watch: Watsco (WSO) Reports Q2 Results Tomorrow
Equipment distributor Watsco (NYSE:WSO) will be reporting earnings tomorrow morning. Here's what to look for.
Watsco missed analysts' revenue expectations by 2% last quarter, reporting revenues of $1.56 billion, flat year on year. It was a weak quarter for the company, with a miss of analysts' earnings estimates.
Is Watsco a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Watsco's revenue to grow 9% year on year to $2.18 billion, a reversal from the 6.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.72 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
Looking at Watsco's peers in the industrial distributors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. United Rentals delivered year-on-year revenue growth of 6.2%, meeting analysts' expectations, and Fastenal reported revenues up 1.8%, in line with consensus estimates. United Rentals traded up 5.4% following the results while Fastenal was also up 5.8%.
Read our full analysis of United Rentals's results here and Fastenal's results here.
There has been positive sentiment among investors in the industrial distributors segment, with share prices up 10.9% on average over the last month. Watsco is up 10.5% during the same time and is heading into earnings with an average analyst price target of $419.2 (compared to the current share price of $510.55).
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