Watsco reports Q1 EPS $2.83, consensus $2.34

Reports Q1 revenue $1.55B, consensus $1.54B. Albert Nahmad, Watsco’s Chairman and CEO stated: "We view the first quarter performance as exceptional in many respects. Last year’s results were driven by robust unit demand, unprecedented levels of OEM pricing actions, and overall strong end-markets, which culminated in the highest single-quarter growth rates in our history. In contrast, OEM pricing actions in 2023 were less, occurred later, and unit volumes are now adjusting toward more conventional run-rates. Despite these factors, Watsco delivered record sales and successfully navigated the regulatory transition to higher SEER products across its markets. Sales of heat pumps continued to expand and our commercial business remains strong. We also executed well in terms of gross margins, maintained SG&A discipline and gained operating efficiency. We intend to build on this success as our selling season unfolds and we have confidence in our team’s ability to navigate changing market conditions and are optimistic about the year ahead."