A. O. Smith (NYSE:AOS) Posts Quarterly Earnings Results

Key Points

• A. O. Smith reported quarterly earnings of $1.07 EPS, exceeding the consensus estimate of $0.97, alongside revenue of $1.01 billion, which was slightly above analyst predictions.
• Despite the positive earnings, A. O. Smith's stock declined by 2.5% to $72.06 following the earnings release.
• The company announced a quarterly dividend of $0.34 per share, representing an annualized yield of 1.89% and a payout ratio of 37.99%.

A. O. Smith (NYSE:AOS - Get Free Report) released its quarterly earnings data on Thursday. The industrial products company reported $1.07 EPS for the quarter, topping the consensus estimate of $0.97 by $0.10, Zacks reports. The business had revenue of $1.01 billion for the quarter, compared to analyst estimates of $997.89 million. A. O. Smith had a net margin of 13.68% and a return on equity of 28.42%. The business's revenue for the quarter was down 1.3% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.06 EPS. A. O. Smith updated its FY 2025 guidance to 3.700-3.900 EPS.

A. O. Smith Stock Down 2.5%

Shares of AOS stock traded down $1.88 on Friday, hitting $72.06. 1,924,083 shares of the stock were exchanged, compared to its average volume of 1,586,319. The company has a current ratio of 1.65, a quick ratio of 1.01 and a debt-to-equity ratio of 0.15. The firm has a market capitalization of $10.24 billion, a P/E ratio of 20.07, a price-to-earnings-growth ratio of 1.62 and a beta of 1.20. The business has a 50-day moving average of $66.80 and a 200 day moving average of $66.76. A. O. Smith has a fifty-two week low of $58.83 and a fifty-two week high of $92.06.

A. O. Smith Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 15th. Shareholders of record on Thursday, July 31st will be paid a $0.34 dividend. The ex-dividend date of this dividend is Thursday, July 31st. This represents a $1.36 dividend on an annualized basis and a yield of 1.89%. A. O. Smith's payout ratio is 37.99%.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in A. O. Smith stock. Goldman Sachs Group Inc. raised its holdings in A. O. Smith Corporation (NYSE:AOS - Free Report) by 19.6% during the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 939,302 shares of the industrial products company's stock after purchasing an additional 154,201 shares during the quarter. Goldman Sachs Group Inc. owned 0.66% of A. O. Smith worth $61,393,000 as of its most recent SEC filing. Hedge funds and other institutional investors own 76.10% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on the stock. Citigroup dropped their target price on shares of A. O. Smith from $69.00 to $65.00 and set a "neutral" rating for the company in a research report on Monday, April 14th. Robert W. Baird increased their target price on A. O. Smith from $76.00 to $82.00 and gave the stock a "neutral" rating in a research report on Friday. Stifel Nicolaus lifted their target price on A. O. Smith from $78.00 to $81.00 and gave the stock a "buy" rating in a report on Monday, July 21st. Weiss Ratings reaffirmed a "hold (c)" rating on shares of A. O. Smith in a research note on Saturday, July 12th. Finally, JPMorgan Chase & Co. initiated coverage on A. O. Smith in a research report on Tuesday, June 24th. They issued a "neutral" rating and a $70.00 price target on the stock. Five investment analysts have rated the stock with a hold rating and three have issued a buy rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $76.57.

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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