LONDON, UK / ACCESSWIRE / August 4, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Watsco, Inc. (NYSE: WSO), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=WSO, following the Company's announcement of its second quarter fiscal 2017 results, on July 25, 2017. The heating and cooling Company reported a 5% in revenue and 14% gain in EPS, with earnings coming in above market estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

http://protraderdaily.com/register/

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on WSO. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=WSO

Earnings Reviewed

For the quarter ended June 30, 2017, Watsco's net sales increased 5% to a record $1.28 billion compared to sales of $1.21 billion in Q2 2016. The Company's revenue numbers met analysts' expectations.

During Q2 2017, Watsco's Heating, ventilation, and air conditioning (HVAC) equipment sales, which contributed 67% of overall sales, increased 7%, including an 8% growth in the United States. The Company's other HVAC products increased by 2% and commercial refrigeration products increased 3% on a y-o-y basis in the reported quarter.

During Q2 2017, Watsco's gross margins improved 30 basis points, and selling, general, and administrative expenses (SG&A), as a percentage of sales, fell 10 basis points. The Company's operating income grew 10% on a y-o-y basis to a record $129.35 million compared to $117.59 million in the prior year's same quarter. Watsco's operating margins expanded 40 basis points to 10.1% from 9.7% in Q2 2016.

For Q2 2017, Watsco reported net income of $73.76 million, or a record $2.07 per share, compared to net income of $59.37 million, or $1.82 per diluted share, in Q2 2016. Earnings results surpassed Wall Street's expectations of $2.02 per share.

Albert H. Nahmad, Watsco's Chairman and CEO stated:

"Our second quarter performance produced the highest sales and profits of any quarter in Watsco's history. Earnings growth and margin expansion were driven by a combination of solid sales growth, improved selling margins, and operating efficiencies."

Acquisition of 35% of Russell Sigler

On June 21, 2017, Watsco's Carrier Enterprise business unit, a joint venture between Watsco and Carrier Corporation, acquired 35% ownership of Russell Sigler, Inc. (RSI). RSI was established in 1950 and is one of the largest HVAC distributors in North America with annual sales of approximately $650 million. It serves over 10,000 customers from 30 locations throughout Arizona, California; Idaho, New Mexico; Nevada; and portions of Texas. Consideration for the purchase was $63.6 million paid in cash (the Company contributed 80%, or $50.9 million). Carrier Enterprise has the exclusive right to purchase shares if and when any current RSI owner wishes to sell shares in the future.

Acquisition of Joint Venture Interests

In February 2017, Watsco raised its ownership of Carrier Enterprise Northeast LLC, also a joint venture with Carrier Corporation, to 80% for approximately $43 million in cash. The incremental investment builds on a November 2016 transaction, which increased Watsco's controlling interest from 60% to 70%. Carrier Enterprise Northeast had sales in 2016 of approximately $500 million from 41 locations in the northeastern United States and 12 locations in Mexico.

Dividends & Cash Flow

In April 2017, Watsco's Board of Directors approved a 19% increase in its annual dividend to $5.00 per share on each outstanding share of its Common and Class B common stock. Watsco has paid dividends for over 40 consecutive years.

Watsco has targeted cash flow from operations to exceed net income in 2017. From 2000 to 2016, Watsco's operating cash flow was approximately $1.9 billion compared to net income of approximately $1.8 billion, surpassing the Company's stated goal of generating cash flow in excess of net income.

Stock Performance

Watsco's share price finished yesterday's trading session at $151.88, slightly advancing 0.74%. A total volume of 245.04 thousand shares have exchanged hands. The Company's stock price advanced 9.17% in the last three months and 7.06% in the previous twelve months. Additionally, the stock gained 2.54% since the start of the year. Shares of the Company have a PE ratio of 28.09 and have a dividend yield of 3.29%. The stock currently has a market cap of $5.44 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily