A. O. Smith FY2025 EPS Estimate Boosted by Zacks Research

Key Points

• Zacks Research has raised its FY2025 earnings per share estimate for A. O. Smith to $3.81, slightly above the previous estimate of $3.80, while the consensus estimate stands at $3.76.
• A. O. Smith has declared a quarterly dividend of $0.36 per share, which will be paid on November 17, marking an increase from the previous dividend of $0.34.
• The company reported earnings of $1.07 per share in its last quarter, exceeding analysts' expectations, but its revenue decreased by 1.3% year-over-year.

A. O. Smith Corporation (NYSE:AOS - Free Report) - Zacks Research increased their FY2025 earnings per share estimates for A. O. Smith in a research note issued on Wednesday, October 15th. Zacks Research analyst Team now expects that the industrial products company will post earnings per share of $3.81 for the year, up from their prior forecast of $3.80. The consensus estimate for A. O. Smith's current full-year earnings is $3.76 per share. Zacks Research also issued estimates for A. O. Smith's Q4 2025 earnings at $0.92 EPS, Q2 2026 earnings at $1.10 EPS, FY2026 earnings at $4.02 EPS and FY2027 earnings at $4.55 EPS.

Several other brokerages have also commented on AOS. UBS Group reissued a "neutral" rating and set a $76.00 price objective (up previously from $74.00) on shares of A. O. Smith in a research report on Monday, July 28th. Wall Street Zen lowered A. O. Smith from a "buy" rating to a "hold" rating in a research report on Friday, September 26th. JPMorgan Chase & Co. assumed coverage on A. O. Smith in a report on Tuesday, June 24th. They set a "neutral" rating and a $70.00 price target for the company. Stifel Nicolaus raised their price target on A. O. Smith from $78.00 to $81.00 and gave the company a "buy" rating in a report on Monday, July 21st. Finally, Oppenheimer raised their price target on A. O. Smith from $82.00 to $88.00 and gave the company an "outperform" rating in a report on Monday, July 28th. Two analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $77.43.

A. O. Smith Stock Performance

Shares of AOS stock opened at $69.24 on Thursday. The stock has a fifty day moving average of $71.98 and a 200 day moving average of $68.43. A. O. Smith has a 52 week low of $58.83 and a 52 week high of $81.92. The firm has a market capitalization of $9.70 billion, a price-to-earnings ratio of 19.29, a PEG ratio of 1.49 and a beta of 1.30. The company has a quick ratio of 1.03, a current ratio of 1.65 and a debt-to-equity ratio of 0.15.

A. O. Smith (NYSE:AOS - Get Free Report) last announced its quarterly earnings results on Thursday, July 24th. The industrial products company reported $1.07 EPS for the quarter, topping analysts' consensus estimates of $0.97 by $0.10. A. O. Smith had a return on equity of 28.42% and a net margin of 13.68%.The company had revenue of $1.01 billion during the quarter, compared to analyst estimates of $997.89 million. During the same quarter last year, the firm posted $1.06 earnings per share. The firm's revenue was down 1.3% on a year-over-year basis. A. O. Smith has set its FY 2025 guidance at 3.700-3.900 EPS.

A. O. Smith Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 17th. Investors of record on Friday, October 31st will be issued a $0.36 dividend. This represents a $1.44 annualized dividend and a yield of 2.1%. The ex-dividend date is Friday, October 31st. This is a positive change from A. O. Smith's previous quarterly dividend of $0.34. A. O. Smith's dividend payout ratio is 40.11%.

Insider Buying and Selling

In related news, Chairman Kevin J. Wheeler sold 22,200 shares of A. O. Smith stock in a transaction dated Wednesday, July 30th. The stock was sold at an average price of $71.26, for a total value of $1,581,972.00. Following the completion of the sale, the chairman directly owned 100,647 shares in the company, valued at approximately $7,172,105.22. This trade represents a 18.07% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.76% of the company's stock.

Institutional Investors Weigh In On A. O. Smith

Several large investors have recently bought and sold shares of the business. Legacy Capital Wealth Partners LLC increased its holdings in A. O. Smith by 4.5% in the 2nd quarter. Legacy Capital Wealth Partners LLC now owns 3,972 shares of the industrial products company's stock worth $260,000 after buying an additional 171 shares in the last quarter. Financial Advocates Investment Management grew its stake in shares of A. O. Smith by 2.5% during the 2nd quarter. Financial Advocates Investment Management now owns 7,040 shares of the industrial products company's stock valued at $462,000 after purchasing an additional 175 shares during the period. Beverly Hills Private Wealth LLC grew its stake in shares of A. O. Smith by 3.1% during the 1st quarter. Beverly Hills Private Wealth LLC now owns 5,847 shares of the industrial products company's stock valued at $382,000 after purchasing an additional 176 shares during the period. Allspring Global Investments Holdings LLC grew its stake in shares of A. O. Smith by 3.3% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 5,532 shares of the industrial products company's stock valued at $363,000 after purchasing an additional 177 shares during the period. Finally, Vienna Powszechne Towarzystwo Emerytalne S.A. Vienna Insurance Group grew its stake in shares of A. O. Smith by 1.2% during the 1st quarter. Vienna Powszechne Towarzystwo Emerytalne S.A. Vienna Insurance Group now owns 15,607 shares of the industrial products company's stock valued at $1,020,000 after purchasing an additional 184 shares during the period. 76.10% of the stock is currently owned by institutional investors.

About A. O. Smith

A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products in North America, China, Europe, and India. The company offers water heaters for residences, restaurants, hotels, office buildings, laundries, car washes, and small businesses; boilers for hospitals, schools, hotels, and other large commercial buildings, as well as homes, apartments, and condominiums; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, and point-of-use carbon and reverse osmosis products for residences, restaurants, hotels, and offices.

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