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Dec 31, 2024
Watsco Q4 2024 Earnings Report
Watsco reported record fourth-quarter sales, expanded margins, and strong cash flow.
Key Takeaways
Watsco achieved a 9% YoY revenue increase, driven by strong HVAC equipment sales. Operating income grew 26%, and net income rose 17%. The company also expanded its gross and operating margins while maintaining a debt-free balance sheet.
Record Q4 revenue of $1.75 billion (+9% YoY).
Net income grew 17% to $96.84 million.
Operating margin expanded by 110 basis points to 7.8%.
Strong cash position with $526.27 million in cash and equivalents.
Revenue by Segment
Forward Guidance
Watsco expects continued revenue growth driven by digital adoption, HVAC equipment demand, and margin expansion.
Positive Outlook
- Strong demand for A2L HVAC products.
- Continued investment in digital platforms to drive market share.
- Debt-free balance sheet allows for strategic investments.
- Dividend increased by 11% to $12.00 per share.
- Resilient commercial equipment sales growth.
Challenges Ahead
- Seasonality impacts Q1 and Q4 results.
- Macroeconomic uncertainty may impact future demand.
- Supply chain constraints could affect inventory availability.
- Rising operating expenses may impact margins.
- Potential market saturation in key regions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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