Watsco's stock plummeted 5.09% during intraday trading on Tuesday, following the release of its first-quarter financial results.
The company reported a decline in key financial metrics for the quarter. Earnings per share decreased 3% to $1.87, down from $1.93 a year earlier, while net income fell 1.69% to $92.94 million. Revenue remained essentially flat at $1.53 billion, and operating income slipped 2% to $110.18 million.
Despite beating analyst estimates, the year-over-year decline in earnings during a seasonally weak period for air-conditioner sales appears to have disappointed investors. The company noted that a stagnant housing market has slowed new housing construction, which impacts its business of supplying HVAC systems for new homes.
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