Watsco Inc. WSO announced 1.3 percent fall in its profit for the second quarter hurt by weak gross and operating margin. Its revenue also slacked by 0.8 percent in the three-month period April to June.
Watsco revealed net income of $64.62 million or $1.82 a share for the latest quarter, down from $65.42 million or $1.85 a share in the year-ago quarter. This was significantly lower than the analysts' estimations of $2.04 a share.
The company's top line was $1.21 billion compared to $1.22 billion in the previous year quarter and came in short of the analysts' predictions of $1.29 billion.
Chairman and CEO, Albert Nahmad, stated, "Our summer selling season started later than normal this year, and record sales and profits in June were insufficient to offset softer business conditions during the early part of the quarter. July sales trends have accelerated to double-digit growth and we believe profits will follow."
He added, "Looking long-term, we remain very positive about our basic fundamentals – the execution of industry-leading technologies, continued acceptance by consumers of higher-efficiency replacement HVAC systems, a culture driven to gain market share, improved operating efficiency and the strategic use of our balance sheet to grow our business."
On Thursday, the stock edged up by 0.38 percent.
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