Watsco Q2 profit misses Street; cuts outlook

Wed Jul 25, 2012 8:24am EDT

* Q2 EPS $1.15 vs est $1.30

* Q2 rev $1.01 bln vs est $1.05 bln

* Cuts FY EPS view to $3.15-$3.25

July 25 (Reuters) - Heating and refrigeration products distributor Watsco Inc reported a lower-than-expected rise in quarterly profit as it sold more low-margin products, and the company cut its full-year forecast.

Watsco earned $39.1 million, or $1.15 a share, in the second quarter, up from $36.0 million, or $1.09 a share, in the year-ago period.

Revenue rose 15 percent to $1.01 billion.

Analysts on average had expected earnings of $1.30 per share on revenue of $1.05 billion, according to Thomson Reuters I/B/E/S.

Gross profit margin fell to 23.6 percent from 24.1 percent a year earlier as heating, ventilation and air conditioning (HVAC) equipment and commercial products increased their shares in the overall sales, the company said.

Watsco cut its full-year outlook and now expects per-share earnings of $3.15 to $3.25, down from the $3.25 to $3.40 it estimated earlier.

The Florida-based company's shares closed at $75.62 on Tuesday on the New York Stock Exchange.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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