- Watsco ( NYSE: WSO ) stock fell ~3% on Thursday after Q3 results missed estimates.
- Q3 revenues grew 14% Y/Y to $2.04B. The company said it saw 13% increase in HVAC equipment (69% of sales), including 14% growth in the U.S.
- Q3 also witnessed 15% growth in other HVAC products (27% of sales), while 18% increase in commercial refrigeration products (4% of sales), according to the company.
- "Third quarter sales reflect normalized residential HVAC equipment volumes, effective price realization, sustained progression towards higher-efficiency systems, which grew 26% during the quarter, a greater mix of heat pumps and strong growth in commercial HVAC systems," said Watsco's Chairman and CEO Albert Nahmad.
- Net income grew ~13% to ~$186.2M. Meanwhile, operating income increased ~14% to ~$236.25M.
- Gross profit rose ~14% Y/Y to $550.85M.
- As of Sept. 30, the company had $130M in cash.
- Dividend: Watsco also said that its board approved an 11% increase in its annual dividend to $9.80 per share on each outstanding share of its common and class B common stock, which will be reflected in quarterly dividend payment in January 2023.
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Watsco trades lower on Q3 miss, despite rise in profit