HVACR distributor Watsco Inc. (NYSE: WSO), Miami, reported third-quarter sales of $1.5 billion, up 10.2% year-over-year. Profit increased 27.6% to $106.5 million, and diluted EPS of $2.76 was up from $2.40 a year ago and beat analysts’ estimates by 27 cents.
Excluding acquisitions, Watsco’s HVAC equipment sales increased 10% in the quarter, other HVAC products increased 2% and commercial refrigeration equipment sales were flat.
“We are pleased to deliver another record quarter, especially during a complex business environment,” said Albert H. Nahmad, Watsco’s chairman and CEO. “Our core U.S. residential business has remained solid and continues to see above-average growth trends. We further strengthened our balance sheet, as evidenced by our record cash flow and debt reduction. Watsco is virtually debt-free and capable of investing in almost any-sized opportunity to grow our network and leadership position in the estimated $40 billion North American HVAC distribution industry. We express our gratitude to our more than 5,700 employees for their extraordinary efforts during this challenging period.”
For the first nine months, sales were $3.9 billion, up 5.5% over the same period a year ago. Profit improved 7.1% to $223.6 million.
Excluding acquisitions, HVAC equipment sales increased 3% in the year-to-date period, other HVAC products decreased 2% and commercial refrigeration equipment decreased 5%.