Watsco Q2 sales fall 6% to $2.0 billion; EPS down 10% to $4.42
Watsco reported second-quarter 2023 results on August 1, 2023, with sales down 6% to $2.0 billion and diluted EPS down 10% to $4.42 from $4.93. The company attributed part of the decline to a product transition under new efficiency regulations and to OEM production and availability delays, which it estimated reduced quarterly sales by $75 to $80 million. For the six months, sales fell 3% to $3.55 billion and EPS fell 7% to $7.25.
- Second-quarter sales of $2.0 billion, down 6%; operating income of $266 million, down 7%
- Second-quarter diluted EPS of $4.42, versus $4.93 a year earlier
- Company estimated OEM-related delays reduced quarterly sales by $75 to $80 million ($115 to $125 million for six months)
- Operating cash flow was a $89 million use of cash for the six months ended June 30, 2023; annual dividend rate is $9.80 per share