Watsco Inc Class A

WSO: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$191.00	Qhgpwx	Mfcmtxtyqc

Watsco Earnings: Gross Margin Slips but Sales Rebound and SG&A Containment Drive Q3 Earnings Growth

Brian Bernard

Oct 19, 2023

According to the Air-Conditioning, Heating, and Refrigeration Institute, year-to-date (through August) shipments of air conditioners, heat pumps, and furnaces were 16% lower than last year. Nevertheless, we think Watsco is on pace for flattish year-over-year revenue growth this year due to favorable price and product mix, and to a much lesser extent, revenue contribution from the September acquisition of Gateway Supply Company, with $180 million of annual sales.

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