July 30, 2007 - Watsco 2Q Profit Drops 21%
For the quarter ended June 30, net income fell to $22.9 million, or 82 cents per share, from $28.7 million, or $1.03 per share in the prior-year quarter. The latest quarter included a loss of 6 cents per share from discontinued operations.
Analysts polled by Thomson Financial expected earnings per share of 89 cents.
Revenue dipped 7% to $471.1 million from $504.8 million in the second quarter of 2006. Analysts predicted revenue of $485.4 million.
The company said it opened or acquired 23 new locations during the quarter, which added about $11 million to its sales.
The company said cooler summer weather and a softer new-housing market depressed results.
Watsco is acquiring distributor ACR Group Inc. in a cash tender offer for about $78.5 million. The acquisition is expected to close next month.