Watsco (NYSE: WSO) reported Q1 EPS of $0.88, in-line with the analyst estimate of $0.88. Revenue for the quarter came in at $931.28 million versus the consensus estimate of $945.66 million.

• 2% increase in operating profit to a record $55 million (10 basis-point expansion in operating margin to 5.9%)
• 4% increase in same-store operating profit (30 basis-point expansion in same-store margins to a record 6.1%)
• 1% increase in gross profit to a record $234 million (20 basis-points improvement in gross margin)
• 1% increase in selling, general & administrative expenses (SG&A)
• Flat SG&A on a same-store basis (10 basis-point decline as a percentage of sales)
• 2% increase in net income to a record $35 million
• Earnings per share (EPS) of 88 cents versus 89 cents last year (1)
• Operating cash flow was a record $53 million versus a cash use of $42 million last year

Sales trends:

• 1% sales growth to a record $931 million (flat on a same-store basis)
• 2% growth in HVAC equipment (67% of sales)
• 2% decrease in other HVAC products (29% of sales)
• 4% decrease in commercial refrigeration products (4% of sales)

Albert H. Nahmad, Watsco’s Chairman and CEO said: “The first quarter is historically the most seasonal quarter of the year, yet we achieved record profitability despite cooler and wetter weather in certain markets, strong year-over-year sales comparisons and one less selling-day in 2019 versus 2018. Our results also reflect investments in 12 new locations and the acceleration of several technology initiatives to drive greater adoption and use throughout our network. We also implemented a number of productivity initiatives as evidenced by our flat same-store SG&A to enhance opportunities for profit growth in 2019. Although it is early, we are optimistic that 2019 will be another record year for our Company.”

For earnings history and earnings-related data on Watsco (WSO) click here.