Watsco Stock Slips to 425th in Market Rankings Amid Disappointing Q1 Results

On April 24, 2025, Watsco (WSO) saw a trading volume of $218 million, a significant 63.8% decrease from the previous day, placing it at the 425th position in the day's stock market rankings. The stock price of Watsco rose by 1.50%.

Watsco's stock experienced a decline due to the company's first-quarter 2025 results, which fell short of market expectations. The company reported a total operating revenue of $1.531 billion, marking a 2.18% year-over-year decrease from $1.565 billion in 2024. This revenue figure was also below the $1.66 billion anticipated by Wall Street analysts.

Despite a 10% increase in core sales, Watsco's overall revenue decreased by 2% to $1.53 billion in the first quarter of 2025. This decline was attributed to a major product transition affecting 55% of the company's sales. The company's earnings per share (EPS) for the quarter were $1.93, missing the consensus estimate of $2.29 per share.

In response to the underwhelming earnings report, Baird analyst David Manthey adjusted the price target for Watsco, reducing it from $560 to $540. This adjustment reflects the market's disappointment with the company's first-quarter performance and the challenges it faces amid the product transition.