Watsco, Inc. reported its financial results for the quarter and nine months ended September 30, 2024, showing a modest increase in revenues but a decline in profitability compared to the previous fiscal period. Revenues for the third quarter reached $2,160.0 million, up from $2,126.8 million in Q3 2023, marking a $33.2 million increase. For the nine months ended September 30, 2024, revenues totaled $5,864.4 million, compared to $5,680.6 million for the same period in 2023.
Operating income for the third quarter was $250.2 million, a decrease from $256.6 million in Q3 2023, while for the nine months, operating income fell to $645.6 million from $687.1 million. Net income for the third quarter was $201.6 million, slightly up from $200.6 million in the prior year, but net income for the nine months decreased to $520.6 million from $536.4 million. Net income attributable to Watsco, Inc. shareholders for Q3 2024 was $171.0 million, compared to $171.0 million in Q3 2023, and for the nine months, it decreased to $439.4 million from $453.8 million.
Earnings per share (EPS) for the third quarter were $4.24 (basic) and $4.22 (diluted), down from $4.36 and $4.35, respectively, in Q3 2023. For the nine months, EPS decreased to $10.95 (basic) and $10.92 (diluted) from $11.64 and $11.60 in the previous year.
The revenue growth was attributed to new locations acquired, contributing approximately $37.5 million, alongside a $2.8 million increase from other newly opened locations. However, there was a $2.6 million revenue decrease from closed locations. Sales of residential HVAC products remained flat, while commercial HVAC equipment sales increased by 6%, with a notable 12% rise in international markets.
Watsco made several strategic acquisitions, including Gateway Supply Company, Inc. in September 2023 and Commercial Specialists, Inc. in February 2024, which are expected to enhance its market presence. The company also reported a significant increase in cash and cash equivalents, rising to $294.4 million as of September 30, 2024, from $210.1 million at the end of 2023.
Despite the challenges, including a decline in gross profit margin due to pricing pressures and a 2% increase in selling, general, and administrative expenses, Watsco's financial position remains strong, with total shareholders' equity increasing to $3,161.9 million from $2,616.2 million at the end of 2023. The company continues to evaluate potential acquisitions and joint ventures to further its growth strategy.
About WATSCO INC
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