Benzinga | Oct 20, 2021 10:00AM EDT

Watsco Clocks 16% Sales Growth In Q3, Misses Street View

* Watsco Inc (NYSE:WSO) reported third-quarter FY21 sales growth of 16% year-on-year, to $1.78 billion, missing the analyst consensus of $1.82 billion.

* Sales excluding acquisitions for HVAC equipment climbed 7% Y/Y, other HVAC products increased 12%, and commercial refrigeration products improved 27%.

* EPS of $3.62 beat the consensus of $3.51.

* The gross profit increased 29% Y/Y to $483 million, and the gross margin expanded 280 basis points to 27.1%.

* The operating margin extended 140 basis points to 11.6%, and operating income for the quarter rose 32% to $207 million.

* Watsco held $137.2 million in cash and equivalents as of September 30, 2021. Net cash provided by operating activities for the nine months totaled $319.6 million.

* Price action: WSO shares are trading lower by 0.70% at $284.52 on the last check Wednesday.