Tuesday, Watsco Inc. (WSO), a distributor of air conditioning and heating equipments, said its third quarter earnings declined from a year ago, hurt by same store sales decline, lower pricing and weakness in its western operations. Nevertheless, earnings reported was in line with Street expectations.
The Coconut Grove, Florida-based Watsco's third-quarter net income attributable to the company decreased to $21.13 million or $0.66 per share from $23.33 million or $0.81 per share in the prior year period. Adjusted earnings per share was $0.71, down from $0.84 last year. On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $ 0.71 per share for the quarter.
The company noted that lower pricing and weakness in the company's western operations impacted same-store sales by $36 million and affected earnings per share by approximately 16 cents for the quarter.
Quarterly revenues rose 56% to $741.89 million from $475.22 million in the comparable period, exceeding Street estimate of $716.92 million. Watsco indicated that recent quarter revenues included $337 million of revenues added by Carrier Enterprise.
Same-store sales declined 15%, reflecting a 9% decline in sales of air conditioning and heating equipment, a 24% decrease in other HVAC products, and a 17% decrease in the sale of refrigeration products. Results also reflect lower pricing for certain commodity-based products and notable weakness in the company's western operations.
Year-to-date, Watsco reported net income attributable to the company of $36.24 million or $1.21 per share, down from $57.03 million or $1.98 per share in the corresponding period last year. Adjusted earnings per share were $1.31, compared to $2.06 in the same period last year.
For the nine-month period, the company generated revenues of $1.438 billion, up from $1.365 billion in the previous year.
WSO is trading at $52.04, down $0.30 or 0.57%, on a volume of about 264 thousand shares.
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