NYSE:WSOTrade Distributors
Watsco (WSO) Stock Revenue Grew But Margins Kept Sliding
Watsco came into this earnings print with the stock drifting lower for months and another 2.9% slide today, despite posting one of its seasonally strongest quarters. The market is leaning away from the long term HVAC distribution story just as the company reported US$2.1b in Q2 revenue and US$4.28 in basic earnings per share.
The headline is not growth at any cost. Investors are focusing on margins. Gross margin landed at 27.5% and trailing net margin sits at 6.1%, both a step down from a...