- Watsco Inc (NYSE:WSO) reported first-quarter FY22 sales growth of 34% year-on-year to $1.52 billion, beating the consensus of $1.38 billion.
- On a same-store basis, the company reported a 25% sales growth. Heating, ventilation, and air conditioning (HVAC) equipment sales grew by 26%. Sales of other HVAC products rose 24%. Commercial refrigeration products sales increased by 35%.
- EPS of $2.90 beat the analyst consensus of $1.77.
- Gross profit rose 53% Y/Y to $450 million, and the gross margin increased 370 basis points Y/Y to 29.6%.
- Selling, general and administrative expenses rose 30.2% to $283.4 million.
- Operating margin expanded 400 basis points to 11.2%, and the operating income for the quarter rose 109% Y/Y to $171 million.
- Cash and equivalents totaled $110.6 million as of March 31, 2022.
- The company noted factors like inflation, supply chain, and high operating expense continued to influence the HVAC/R industry along with the company's operating performance during the first quarter.
- In April 2022, Watsco's annual dividend was increased 13% to $8.80 per share, which will be reflected in its next scheduled quarterly payment date on April 29, 2022.
- Price Action: WSO shares are trading higher by 7.39% at $307.75 on the last check Thursday.
