By Dean Seal
Watsco recorded better-than-expected sales gains in the typically muted fourth quarter as it acquired more residential customers and picked up market share, boosting shares.
The Miami distributor of HVAC and refrigeration equipment posted a profit of $96.8 million, up from $82.5 million in the year-earlier quarter. Earnings were $2.37 a share, topping analyst projections for $2.15 a share, according to FactSet.
Revenue rose 9% to $1.75 billion. Analysts polled by FactSet had been expecting $1.66 billion.
Shares rose 5.6% to $510.80 in premarket trading. The stock was changing hands at around $381 this time a year ago.
Sales of heating and air-conditioning equipment, which account for more than two-thirds of the top line, were up 14% while sales of other HVAC products were flat. Sales of commercial refrigeration products, still just 4% of overall revenue, were up 4%.
Watsco saw 16% sales growth from residential equipment as it acquired new customers, gained market share and saw double-digit unit growth. Equipment sales on the commercial side were up 9%.
The company also said Tuesday that its board has agreed to raise Watsco's annual dividend by 11% to $12 a share, effective at the next payout in April.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
February 18, 2025 08:17 ET (13:17 GMT)
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