Overview

* Watsco ( WSO ) Q2 revenue falls 4% to $2.06 bln, missing analyst expectations

* Gross profit rises 4% to record $603 mln, driven by margin expansion

* Co navigates A2L refrigerant transition, impacting sales volumes

Result Drivers

* A2L TRANSITION - Transition to A2L refrigerants impacted sales volumes, contributing to revenue decline

* PRICING TECHNOLOGIES - Margin expansion driven by pricing technologies and OEM pricing actions

* EXPENSE INCREASES - Higher SG&A expenses due to labor and transportation costs related to A2L transition and acquisitions

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $2.06 $2.23

bln bln (12

Analysts

)

Q2 EPS $4.52

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 13 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the electrical components & equipment peer group is "buy."

* Wall Street's median 12-month price target for Watsco Inc ( WSO ) is $480.00, about 3.2% above its July 29 closing price of $464.82

* The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 34 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)