Watsco Shares Continue Slide Amid Housing Market Pressures

The ongoing downturn in the U.S. housing market is delivering a significant blow to one of its key suppliers. Watsco, a leading American distributor of air conditioning and refrigeration equipment, is confronting a severe contraction in sales volumes. Recent disclosures made during a Morgan Stanley conference have amplified existing investor concerns about the company’s near-term prospects.

Watsco’s challenges were already apparent in its second-quarter results, which fell short of Wall Street’s expectations. The company reported a 3.6% decline in revenue, which totaled $2.06 billion. Earnings per share also disappointed, coming in at $4.52 against a projected $4.80. A notable bright spot was the expansion of the gross margin, which reached a record high of 29.3%. However, this positive development was insufficient to... Read more...