Benzinga | Jul 22, 2021 12:43PM EDT

Watsco Shares Gain After Strong Q2 Results

* Watsco Inc (NYSE:WSO) reported second-quarter FY21 net revenue growth of 36.5% year-on-year to $1.85 billion, beating the analyst consensus of $1.67 billion.

* EPS of $3.71 beat the analyst consensus of $3.00.

* Heating, ventilation, and air conditioning (HVAC) sales grew 23% Y/Y.

* Gross profit rose 50% Y/Y to $478 million, and the gross margin increased 220 basis points Y/Y to 25.8%.

* Selling, general and administrative expenses rose 37.4% to $266.7 million.

* The operating margin expanded 220 basis points to 11.7%, and the operating income for the quarter rose 68% Y/Y to $217 million.

* Cash and equivalents totaled $96.8 million as of June 30, 2021.

* Operating cash flow for H1 of 2021 was $82 million, versus $261 million last year. The company has targeted operating cash flow to exceed net income in 2021.

* Price action: WSO shares are trading higher by 2.00% at $287.16 on the last check Thursday.