A. O. Smith (NYSE:AOS) Reaches New 52-Week Low After Earnings Miss

Key Points

• A. O. Smith hit a new 52-week low after missing Q results—EPS of $0.85 versus $0.94 expected and revenue of $945.6M versus $976.86M, with shares trading as low as $61.89 (prior close $63.68).
• The company set FY 2026 guidance at 3.600–3.900 EPS, giving investors a forward earnings range to assess against the recent quarter's shortfall.
• A. O. Smith announced a quarterly dividend of $0.36 (ex-dividend April 30, payable May 15), equal to $1.44 annualized for a ~2.3% yield and a 37.31% payout ratio.

A. O. Smith Corporation (NYSE:AOS - Get Free Report) reached a new 52-week low during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $61.89 and last traded at $61.8930, with a volume of 693600 shares trading hands. The stock had previously closed at $63.68.

The industrial products company reported $0.85 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.94 by ($0.09). The company had revenue of $945.60 million for the quarter, compared to the consensus estimate of $976.86 million. A. O. Smith had a return on equity of 29.51% and a net margin of 14.26%.The firm's revenue for the quarter was down 1.9% compared to the same quarter last year. During the same period in the previous year, the company earned $0.95 EPS. A. O. Smith has set its FY 2026 guidance at 3.600-3.900 EPS.

A. O. Smith Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, May 15th. Shareholders of record on Thursday, April 30th will be paid a $0.36 dividend. The ex-dividend date of this dividend is Thursday, April 30th. This represents a $1.44 annualized dividend and a yield of 2.3%. A. O. Smith's dividend payout ratio is presently 37.31%.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the company. Wall Street Zen lowered A. O. Smith from a "buy" rating to a "hold" rating in a research report on Saturday, February 14th. Robert W. Baird set a $77.00 target price on A. O. Smith in a research note on Friday, January 30th. Citigroup dropped their target price on A. O. Smith from $78.00 to $74.00 and set a "neutral" rating on the stock in a report on Monday, April 13th. Stifel Nicolaus set a $78.00 target price on A. O. Smith and gave the company a "buy" rating in a report on Tuesday, April 14th. Finally, Jefferies Financial Group set a $75.00 target price on A. O. Smith and gave the company a "hold" rating in a report on Friday, January 9th. Two investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $74.89.

Insider Buying and Selling

In other A. O. Smith news, SVP Darrell W. Schuh sold 1,104 shares of the firm's stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $74.39, for a total value of $82,126.56. Following the completion of the sale, the senior vice president directly owned 2,201 shares of the company's stock, valued at $163,732.39. This trade represents a 33.40% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Company insiders own 0.50% of the company's stock.

Institutional Investors Weigh In On A. O. Smith

Large investors have recently added to or reduced their stakes in the business. Goldman Sachs Group Inc. lifted its stake in A. O. Smith by 19.6% during the first quarter. Goldman Sachs Group Inc. now owns 939,302 shares of the industrial products company's stock worth $61,393,000 after purchasing an additional 154,201 shares during the last quarter. EverSource Wealth Advisors LLC lifted its stake in shares of A. O. Smith by 78.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 963 shares of the industrial products company's stock valued at $63,000 after acquiring an additional 422 shares during the last quarter. Marshall Wace LLP bought a new stake in shares of A. O. Smith in the 2nd quarter valued at about $5,212,000. California Public Employees Retirement System lifted its stake in shares of A. O. Smith by 11.4% in the 2nd quarter. California Public Employees Retirement System now owns 211,176 shares of the industrial products company's stock valued at $13,847,000 after acquiring an additional 21,657 shares during the last quarter. Finally, Bank of Nova Scotia increased its holdings in A. O. Smith by 165.3% during the 2nd quarter. Bank of Nova Scotia now owns 32,874 shares of the industrial products company's stock valued at $2,156,000 after purchasing an additional 20,485 shares during the period. Institutional investors own 76.10% of the company's stock.

A. O. Smith Stock Performance

The company has a market cap of $8.57 billion, a PE ratio of 16.06, a P/E/G ratio of 1.35 and a beta of 1.35. The company has a current ratio of 1.50, a quick ratio of 0.94 and a debt-to-equity ratio of 0.06. The business has a fifty day moving average of $67.99 and a 200-day moving average of $69.01.

About A. O. Smith

A. O. Smith Corporation, based in Milwaukee, Wisconsin, is a leading manufacturer of water heating and water treatment products for residential and commercial applications. Since its founding in 1874, the company has built a reputation for producing reliable, energy-efficient water heaters, boilers and pressure vessels. Its product portfolio encompasses gas, electric, condensing and tankless water heaters, as well as specialty boilers designed to meet a variety of building and industrial needs.

The company operates through two primary segments: North America and Asia.

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