Key Takeaways:
- Watsco reported Q2 EPS of $4.00, missing the $4.48 consensus estimate.
- Revenue came in at $2.105B, below the $2.169B analyst forecast.
- The HVAC distributor faces headwinds from a cooling housing market.
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Watsco misses Q2 estimates as revenue falls short of $2.17B consensus
Watsco reported Q2 revenue of $2.105B, missing the $2.169B consensus, with EPS of $4.00 trailing estimates by $0.48.
The Miami-based HVAC distributor, which operates across North America, posted earnings per share of $4.00 for the quarter ended June 30, below the average analyst estimate of $4.48 compiled by Bloomberg. Revenue of $2.105B fell short of the $2.169B forecast, representing a miss of approximately $64M.
The results reflect ongoing pressure in the residential HVAC market as higher interest rates continue to weigh on housing turnover and renovation activity. Watsco distributes air conditioning, heating and refrigeration equipment and related parts through a network of more than 700 locations in the US, Canada, Mexico and Puerto Rico.
Watsco's performance in the second quarter signals that the housing slowdown is persisting into the second half of 2026. The company's next catalyst will be the Q3 earnings report, where investors will look for signs of recovery in residential replacement demand as the peak summer cooling season concludes.
This article is for informational purposes only and does not constitute investment advice.
