Watsco reports record earnings for second quarter

Watsco, a distributor of heating and cooling systems, reported second quarter revenues on Tuesday were a record $1.22 billion, up 5 percent year-over-year. Profit increased 16.6 percent to $65.4 million in the second quarter, making it the most profitable quarter in its history, the Miami-based company said.

Earnings per share grew 16 percent to a record $1.85 and operating income also reached a record, growing 11 percent. HVAC equipment sales grew 7 percent in the quarter.

For the first six months, sales were $2.03 billion, up 5 percent over the same period a year ago. Profit grew 21.4 percent to $88.5 million.

“Our second quarter performance produced the highest sales, profits and operating margin of any quarter in Watsco’s history,” said CEO Albert Nahmad in a statement. “Earnings growth and margin expansion were driven by a combination of solid sales growth, better selling margins and operating efficiencies. We remain focused on our fundamentals – gaining market share for our supplier partners, improving operating efficiency and having the products and people in place to best serve our customers.”

The company has also added about 100 employees this year, said Nahmad. Watsco’s outlook for 2015 remains in the range of $5 to $5.20 earnings per share, which represents a growth rate of 16 percent to 20 percent over 2014 results.

Watsco sells is HVAC equipment in the U.S., Canada, Mexico and Puerto Rico and exports to Latin America.

This story was originally published July 21, 2015 at 12:52 PM.