Zacks: Analysts Expect A. O. Smith Corp (AOS) Will Post Earnings of $0.58 Per Share

Analysts expect A. O. Smith Corp (NYSE:AOS) to post earnings of $0.58 per share for the current fiscal quarter, Zacks Investment Research reports. Eight analysts have issued estimates for A. O. Smith’s earnings, with estimates ranging from $0.54 to $0.65. A. O. Smith posted earnings of $0.60 per share during the same quarter last year, which would suggest a negative year-over-year growth rate of 3.3%. The firm is scheduled to issue its next quarterly earnings results on Wednesday, April 24th.

According to Zacks, analysts expect that A. O. Smith will report full year earnings of $2.72 per share for the current financial year, with EPS estimates ranging from $2.65 to $2.79. For the next financial year, analysts anticipate that the company will post earnings of $2.98 per share, with EPS estimates ranging from $2.95 to $3.06. Zacks’ EPS calculations are a mean average based on a survey of analysts that that provide coverage for A. O. Smith.

A. O. Smith (NYSE:AOS) last announced its earnings results on Tuesday, January 29th. The industrial products company reported $0.74 EPS for the quarter, beating analysts’ consensus estimates of $0.71 by $0.03. A. O. Smith had a return on equity of 26.00% and a net margin of 13.93%. The business had revenue of $812.50 million during the quarter, compared to analysts’ expectations of $821.35 million. During the same quarter in the prior year, the firm earned $0.60 earnings per share. The business’s revenue was up 5.7% compared to the same quarter last year.



AOS has been the subject of a number of research analyst reports. Stephens initiated coverage on A. O. Smith in a report on Monday, November 19th. They set an “equal weight” rating and a $50.00 target price for the company. Zacks Investment Research raised A. O. Smith from a “sell” rating to a “hold” rating in a report on Wednesday, November 21st. ValuEngine raised A. O. Smith from a “sell” rating to a “hold” rating in a report on Wednesday, December 26th. Boenning Scattergood reissued a “buy” rating on shares of A. O. Smith in a report on Tuesday, January 29th. Finally, Oppenheimer reissued a “hold” rating on shares of A. O. Smith in a report on Tuesday, January 29th. Three analysts have rated the stock with a sell rating, four have issued a hold rating and five have assigned a buy rating to the stock. A. O. Smith currently has an average rating of “Hold” and an average price target of $62.30.

In other news, SVP Paul R. Dana sold 4,836 shares of the firm’s stock in a transaction on Monday, February 11th. The stock was sold at an average price of $49.50, for a total transaction of $239,382.00. Following the completion of the transaction, the senior vice president now directly owns 5,891 shares in the company, valued at $291,604.50. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, insider Wallace E. Goodwin sold 13,200 shares of the firm’s stock in a transaction on Wednesday, February 6th. The stock was sold at an average price of $50.02, for a total value of $660,264.00. The disclosure for this sale can be found here. In the last three months, insiders have sold 38,036 shares of company stock valued at $1,879,646. 1.03% of the stock is owned by insiders.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc boosted its position in shares of A. O. Smith by 1.0% during the third quarter. Vanguard Group Inc now owns 15,880,701 shares of the industrial products company’s stock worth $847,553,000 after buying an additional 151,373 shares during the period. Brown Advisory Inc. boosted its position in shares of A. O. Smith by 11.6% during the third quarter. Brown Advisory Inc. now owns 5,170,181 shares of the industrial products company’s stock worth $275,932,000 after buying an additional 537,803 shares during the period. Morgan Stanley boosted its position in shares of A. O. Smith by 24.3% during the third quarter. Morgan Stanley now owns 4,323,398 shares of the industrial products company’s stock worth $230,740,000 after buying an additional 845,117 shares during the period. Impax Asset Management Group plc boosted its position in shares of A. O. Smith by 51.1% during the fourth quarter. Impax Asset Management Group plc now owns 4,283,691 shares of the industrial products company’s stock worth $182,914,000 after buying an additional 1,448,313 shares during the period. Finally, Pictet Asset Management Ltd. boosted its position in shares of A. O. Smith by 3.6% during the third quarter. Pictet Asset Management Ltd. now owns 3,615,418 shares of the industrial products company’s stock worth $192,955,000 after buying an additional 124,609 shares during the period. Institutional investors and hedge funds own 74.99% of the company’s stock.

Shares of A. O. Smith stock opened at $50.97 on Friday. A. O. Smith has a 12 month low of $40.34 and a 12 month high of $66.48. The company has a market cap of $8.74 billion, a price-to-earnings ratio of 19.53, a PEG ratio of 1.68 and a beta of 1.39. The company has a quick ratio of 1.70, a current ratio of 2.09 and a debt-to-equity ratio of 0.13.

The firm also recently announced a quarterly dividend, which was paid on Friday, February 15th. Shareholders of record on Thursday, January 31st were paid a dividend of $0.22 per share. The ex-dividend date of this dividend was Wednesday, January 30th. This represents a $0.88 annualized dividend and a yield of 1.73%. A. O. Smith’s dividend payout ratio (DPR) is 33.72%.

About A. O. Smith

A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, tanks, and water treatment products in North America, China, Europe, and India. It operates through two segments, North America and Rest of World. The company offers water heaters for residences, restaurants, hotels and motels, office buildings, laundries, car washes, and small businesses; residential and commercial boilers for space heating applications in hospitals, schools, hotels, and other 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 filtration products for residences, restaurants, hotels, and offices.

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