$804.25 Million in Sales Expected for A. O. Smith Corp (AOS) This Quarter

Analysts expect that A. O. Smith Corp (NYSE:AOS) will post $804.25 million in sales for the current quarter, Zacks Investment Research reports. Eight analysts have issued estimates for A. O. Smith’s earnings, with the lowest sales estimate coming in at $789.20 million and the highest estimate coming in at $818.50 million. A. O. Smith reported sales of $749.90 million in the same quarter last year, which would suggest a positive year over year growth rate of 7.2%. The company is scheduled to issue its next quarterly earnings results before the market opens on Tuesday, October 30th.

According to Zacks, analysts expect that A. O. Smith will report full-year sales of $3.27 billion for the current year, with estimates ranging from $3.24 billion to $3.29 billion. For the next year, analysts anticipate that the firm will report sales of $3.51 billion, with estimates ranging from $3.45 billion to $3.59 billion. Zacks Investment Research’s sales calculations are an average based on a survey of sell-side research firms that cover A. O. Smith.

A. O. Smith (NYSE:AOS) last announced its quarterly earnings results on Tuesday, October 30th. The industrial products company reported $0.61 EPS for the quarter, missing the Zacks’ consensus estimate of $0.63 by ($0.02). The business had revenue of $754.10 million for the quarter, compared to analysts’ expectations of $805.92 million. A. O. Smith had a net margin of 10.50% and a return on equity of 24.67%. The business’s quarterly revenue was up .6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.54 earnings per share.



AOS has been the topic of a number of recent research reports. Boenning Scattergood restated a “buy” rating and set a $75.00 price target on shares of A. O. Smith in a research note on Wednesday, July 25th. SunTrust Banks restated a “buy” rating and set a $71.00 price target on shares of A. O. Smith in a research note on Thursday, July 26th. BMO Capital Markets reaffirmed a “buy” rating and set a $73.00 target price on shares of A. O. Smith in a report on Thursday, July 26th. Zacks Investment Research raised shares of A. O. Smith from a “hold” rating to a “buy” rating and set a $66.00 target price on the stock in a report on Tuesday, August 7th. Finally, Oppenheimer reaffirmed a “hold” rating on shares of A. O. Smith in a report on Tuesday, September 18th. Two research analysts have rated the stock with a sell rating, three have given a hold rating and five have issued a buy rating to the company. The stock presently has a consensus rating of “Hold” and a consensus target price of $66.63.

Shares of AOS stock traded up $2.76 during trading on Tuesday, reaching $45.04. 338,447 shares of the company’s stock traded hands, compared to its average volume of 2,399,544. The stock has a market capitalization of $7.46 billion, a P/E ratio of 20.76, a PEG ratio of 1.39 and a beta of 1.44. The company has a current ratio of 2.15, a quick ratio of 1.77 and a debt-to-equity ratio of 0.14. A. O. Smith has a 1 year low of $41.74 and a 1 year high of $68.39.

The company also recently announced a quarterly dividend, which will be paid on Thursday, November 15th. Investors of record on Wednesday, October 31st will be issued a dividend of $0.22 per share. This represents a $0.88 dividend on an annualized basis and a yield of 1.95%. The ex-dividend date of this dividend is Tuesday, October 30th. This is a positive change from A. O. Smith’s previous quarterly dividend of $0.18. A. O. Smith’s dividend payout ratio is 33.18%.

In related news, Director Paul W. Jones sold 4,591 shares of the company’s stock in a transaction that occurred on Tuesday, August 21st. The shares were sold at an average price of $58.92, for a total transaction of $270,501.72. Following the sale, the director now owns 214,558 shares of the company’s stock, valued at approximately $12,641,757.36. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 1.28% of the company’s stock.

A number of institutional investors have recently bought and sold shares of the stock. BlackRock Inc. increased its holdings in A. O. Smith by 1.1% during the 2nd quarter. BlackRock Inc. now owns 10,212,252 shares of the industrial products company’s stock worth $604,055,000 after acquiring an additional 112,242 shares during the period. Janus Henderson Group PLC increased its holdings in shares of A. O. Smith by 0.5% in the 2nd quarter. Janus Henderson Group PLC now owns 7,008,473 shares of the industrial products company’s stock worth $414,554,000 after buying an additional 36,879 shares during the last quarter. Morgan Stanley increased its holdings in shares of A. O. Smith by 531.8% in the 2nd quarter. Morgan Stanley now owns 3,478,281 shares of the industrial products company’s stock worth $205,741,000 after buying an additional 2,927,749 shares during the last quarter. Waddell & Reed Financial Inc. increased its holdings in shares of A. O. Smith by 12.7% in the 2nd quarter. Waddell & Reed Financial Inc. now owns 1,662,424 shares of the industrial products company’s stock worth $98,333,000 after buying an additional 187,800 shares during the last quarter. Finally, MERIAN GLOBAL INVESTORS UK Ltd increased its holdings in shares of A. O. Smith by 38.1% in the 3rd quarter. MERIAN GLOBAL INVESTORS UK Ltd now owns 1,596,018 shares of the industrial products company’s stock worth $85,179,000 after buying an additional 440,720 shares during the last quarter. 75.40% of the stock is currently owned by institutional investors and hedge funds.

About A. O. Smith

A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, and water treatment products in North America, China, Europe, and India. The company offers water heaters for residences, restaurants, hotels and motels, office buildings, laundries, car washes, and small businesses; residential and commercial boilers for use in space heating applications for hospitals, schools, hotels, and other large commercial buildings; and water treatment products, including on-the-go filtration bottles, point-of-use carbon and reverse osmosis products, point-of-entry water softeners, and whole-home water filtrations products for residences, restaurants, hotels, and offices.

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