Business

Watsco reports record earnings for quarter, year

    Miami-based Watsco, the world’s largest distributor of air conditioning and heating equipment, reported record fourth-quarter 2015 earnings per share of 75 cents, which increased 9 percent year over year, beating analysts’ expectations. Fourth quarter net income was $24.4 million, driven by record sales, market share gains and record cash flow. Total revenues in the quarter increased 3 percent year over year to a record $904 million.

    “We experienced consistent growth in both residential and commercial markets, with continued strength in sales of high-efficiency replacement systems,” said Watsco Chairman and CEO Albert H. Nahmad on Thursday. The quarter saw 6 percent growth in HVAC equipment, which makes up 65 percent of Watsco’s sales.

    For the year, Watsco reported record earnings per share of $4.90 in 2015, up from $4.32 in the prior year and ahead of analysts’ expectations. Revenues increased 4 percent year over year to $4.11 billion. Sales of HVAC equipment grew 7 percent for the year, and 8 percent growth in the U.S.

    “Watsco has immense potential in the replacement market given an aging stock of air conditioners and heating systems in the U.S. The company will benefit from expansion of its product offering as well as logistical and productivity improvements. However, foreign currency headwinds, seasonal factors and lack of acquisitions will weigh on Watsco’s results,” according to Zacks Investment Research.

    Watsco’s stock was trading on the New York Stock Exchange at $124.30 Tuesday afternoon, up about 13 percent in the past month and up about 7 percent over a year ago.

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