Have you looked into how Watsco (WSO Quick QuoteWSO - Free Report) performed internationally during the quarter ending June 2025? Considering the widespread global presence of this heating and cooling company, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.

Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.

While analyzing WSO's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.

The recent quarter saw the company's total revenue reaching $2.06 billion, marking a decline of 3.6% from the prior-year quarter. Next, we'll examine the breakdown of WSO's revenue from abroad to comprehend the significance of its international presence.

Decoding WSO's International Revenue Trends

During the quarter, Canada contributed $93.71 million in revenue, making up 4.5% of the total revenue. When compared to the consensus estimate of $97.44 million, this meant a surprise of -3.83%. Looking back, Canada contributed $76.41 million, or 5%, in the previous quarter, and $95.7 million, or 4.5%, in the same quarter of the previous year.

Latin America and the Caribbean generated $94.35 million in revenues for the company in the last quarter, constituting 4.6% of the total. This represented a surprise of -16.51% compared to the $113.01 million projected by Wall Street analysts. Comparatively, in the previous quarter, Latin America and the Caribbean accounted for $77.04 million (5%), and in the year-ago quarter, it contributed $117.13 million (5.5%) to the total revenue.

Projected Revenues in Foreign Markets

Wall Street analysts expect Watsco to report $2.21 billion in total revenue for the current fiscal quarter, indicating an increase of 2.3% from the year-ago quarter. Canada and Latin America and the Caribbean are expected to contribute 4.9% (translating to $107.54 million), and 5.2% ($115.62 million) to the total revenue, respectively.

For the full year, a total revenue of $7.64 billion is expected for the company, reflecting an increase of 0.3% from the year before. The revenues from Canada and Latin America and the Caribbean are expected to make up 4.9%, and 5.3% of this total, corresponding to $370.31 million, and $404.53 million, respectively.

Wrapping Up

Watsco's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.

Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.

Watsco, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Exploring Recent Trends in Stock Price

Over the past month, the stock has lost 12.6% versus the Zacks S&P 500 composite's 2.7% increase. The Zacks Construction sector, of which Watsco is a part, has risen 5.7% over the same period. The company's shares have declined 16.5% over the past three months compared to the S&P 500's 13.2% increase. Over the same period, the sector has risen 12.7%