Stay Ahead of the Game With Watsco (WSO) Q4 Earnings: Wall Street's Insights on Key Metrics

In its upcoming report, Watsco (WSO) is predicted by Wall Street analysts to post quarterly earnings of $1.94 per share, reflecting a decline of 18.1% compared to the same period last year. Revenues are forecasted to be $1.61 billion, representing a year-over-year decrease of 8.3%.

The consensus EPS estimate for the quarter has been revised 8.6% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

Given this perspective, it's time to examine the average forecasts of specific Watsco metrics that are routinely monitored and predicted by Wall Street analysts.

Analysts' assessment points toward 'Revenues- HVAC Equipment' reaching $1.07 billion. The estimate indicates a year-over-year change of -11.3%.

Based on the collective assessment of analysts, 'Revenues- Commercial Refrigeration Products' should arrive at $70.51 million. The estimate suggests a change of +0.5% year over year.

According to the collective judgment of analysts, 'Revenues- HVAC Products' should come in at $466.48 million. The estimate indicates a year-over-year change of -1.5%.

Watsco shares have witnessed a change of +13.6% in the past month, in contrast to the Zacks S&P 500 composite's -0.3% move. With a Zacks Rank #4 (Sell), WSO is expected underperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

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This article originally published on Zacks Investment Research (zacks.com).

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