2023-04-20 15:53:33 ET
- Shares of Watsco ( NYSE: WSO ) surged as much as 12.6% on Thursday after the company reported results for the first quarter of 2023.
- The company, which distributes air conditioning and refrigeration equipment, posted Q1 GAAP EPS of $2.83, beating estimates by $0.39. Revenue of $1.55B was +2.0% Y/Y but fell short of expectations by just $10M.
- Commenting on Q1 sales, CEO Albert Nahmad said, "sales of heat pumps continued to expand and our commercial business remains strong."
- Q1 metrics: Gross profit $448M vs $450M, gross margin 28.9% vs 29.6%, operating income $165M (-4% Y/Y), operating margin 10.6% vs. 11.2%.
- At March 31, 2023, the company said it had net borrowings of $57 million ($141 million of cash less $198 million in borrowings drawn from its $600 million credit facility), and $2.3 billion of shareholders’ equity along with operating income of $825 million for the 12-month period ended March 31, 2023.
- WSO fell 17.3% in 2022, while the benchmark S&P 500 index slipped nearly 20% for the year.
- Stock is up 29.1% so far this year as of Wednesday's close.
For further details see:
Watsco stock soars 12% after cool profit beat in Q1