Watsco Sees EPS at $1.94, Revenue Slumping 8.3% to $1.62B
Watsco's upcoming quarterly earnings per share are projected at $1.94, an 18.1% drop year-over-year, with revenues expected to fall 8.3% to $1.62 billion. Consensus EPS estimates have been cut by 8.6% over the past month, while the stock trades at a P/E of 28.6 and a current ratio of 3.84.
1. Forecasted Quarterly Results
For the quarter ending February 17, 2026, Watsco is expected to report EPS of $1.94, an 18.1% year-over-year decline, with revenue forecast at $1.62 billion, down 8.3% from the prior year.
2. Analyst Estimate Revisions
Over the past 30 days, consensus EPS estimates have been revised downward by 8.6%, reflecting analyst caution ahead of the earnings release. This adjustment signals a reassessment of Watsco's near-term profitability outlook.
3. Market Valuation Metrics
The stock trades at a price-to-earnings ratio of approximately 28.63 and a price-to-sales ratio of about 2.28, with enterprise value to sales around 2.29 and EV to operating cash flow near 31.01, highlighting current market valuation levels.
4. Liquidity and Capital Structure
Watsco's balance sheet shows a current ratio of 3.84, underscoring strong liquidity, while a debt-to-equity ratio of 0.16 suggests conservative leverage and capacity to weather market pressures.