Watsco Inc (WSO) released its first quarter results on Friday, April 23, 2021. The company reported net earnings of $1.39 per share for the first quarter ending March 31, 2021. Earnings for this past quarter were up 92 percent compared to the same period a year ago.
Watsco, Inc. was founded in 1945 and is headquartered in Miami, Florida. Watsco, Inc., together with its subsidiaries, distributes air conditioning, heating, and refrigeration equipment; and related parts and supplies in the United States, Canada, Mexico, and Puerto Rico. It offers residential ducted and ductless air conditioners, including gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment.
Watsco's revenue increased 7 percent over the past trailing twelve-month period versus the previous twelve-month period. Gross margins increased to 25.95% for the first quarter compared to the same period in the previous year, and operating margins increased to 6.8% over the same period. Net earnings for past trailing twelve months were $273.62 million, up 25% from the prior year.
Moving on to the balance sheet, Watsco’s cash levels jumped 83% for the third quarter over the same period last year. Overall liquidity of the balance sheet, as measured by the current ratio, decreased 12.05% this past year. The current ratio for Watsco now stands at 2.69. The company increased shares outstanding by 0.86%.
Shares of WSO are currently trading around $292.27. In terms of valuation, the stock is trading at a trailing twelve-month price to earnings ratio of 38.97 and price to book ratio of 6.92.
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This article was written by Value Investing News (https://www.valueinvestingnews.com) on Saturday, April 24, 2021.