Watsco (WSO Quick QuoteWSO - Free Report) reported $1.6 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 1.4%. EPS of $2.06 for the same period compares to $2.35 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $1.64 billion, representing a surprise of -2.15%. The company delivered an EPS surprise of -17.60%, with the consensus EPS estimate being $2.50.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Watsco performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Sales trends - HVAC equipment (% of sales): 69% compared to the 68.1% average estimate based on two analysts.
• Sales trends - Commercial refrigeration products (% of sales): 4% compared to the 4.2% average estimate based on two analysts.
• Sales trends - Other HVAC products (% of sales): 27% versus 27.8% estimated by two analysts on average.

View all Key Company Metrics for Watsco here>>>

Shares of Watsco have returned +0.7% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.