This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Watsco’s Fourth Quarter EPS Gains 26% To 39 Cents

Watsco, Inc. (NYSE:WSO) (Paris: WSO) today reported results for the fourth quarter and year ended December 31, 2011.

Fourth Quarter Results

Earnings per share increased 26% to 39 cents per diluted share compared to 31 cents per diluted share in 2010. Net income increased 28% to $13 million versus $10 million last year.

Operating income improved 49% to a record $33 million with operating margin expanding 170 basis-points to 5.0%. On a same-store basis, operating income increased 31% to $28 million with operating margin also expanding 170 basis-points.

Revenues were $646 million and declined 12% on a same-store basis. Gross profit was a record $161 million with gross profit margin improving 150 basis-points to 24.9%. On a same-store basis, gross profit decreased 6% with gross profit margin increasing 180 basis-points to 25.1%.

Selling, general and administrative (SG&A) expenses decreased 3% to $128 million and as a percentage of sales were 19.9% versus 20.1% last year. Excluding new locations, SG&A declined 13% or $17 million to $115 million.

Albert Nahmad, Watsco’s President & Chief Executive Officer stated: “Our team did a great job of anticipating and reacting to more difficult market conditions and produced higher margins and strong earnings growth during the quarter. These results are a testament to our culture, which provides local leadership the empowerment and incentives to constantly identify opportunities that enhance value to our customers and generate higher profitability.”

Full Year Results

Earnings per share increased 10% to $2.74 per diluted share on net income of $90 million, compared to $2.49 per diluted share on net income of $81 million in 2010.

Operating income increased 20% to a record $199 million with operating margin expanding 90 basis-points to 6.7%. On a same-store basis, operating income increased 14% to $187 million with operating margin also improving 90 basis-points to 6.7%.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs