A. O. Smith (NYSE:AOS) Updates FY 2026 Earnings Guidance

Key Points

• A. O. Smith set FY2026 earnings guidance at $3.60–$3.90 EPS and revenue guidance of $3.9–$4.0 billion, below consensus estimates of $3.98 EPS and $4.0 billion revenue.
• Several brokers cut ratings and price targets (including Goldman Sachs lowering its target to $61 and a "sell" rating), leaving a MarketBeat consensus rating of "Hold" with a $74.89 target.
• The company missed the most recent quarter (EPS $0.85 vs. $0.94 consensus; revenue $945.6M vs. $976.9M), shares fell about 1.7% to $62.59, and it declared a quarterly dividend of $0.36 per share.

A. O. Smith (NYSE:AOS - Get Free Report) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share guidance of 3.600-3.900 for the period, compared to the consensus earnings per share estimate of 3.980. The company issued revenue guidance of $3.9 billion-$4.0 billion, compared to the consensus revenue estimate of $4.0 billion.

Analysts Set New Price Targets

Several brokerages recently issued reports on AOS. Wall Street Zen downgraded shares of A. O. Smith from a "buy" rating to a "hold" rating in a research note on Saturday, February 14th. The Goldman Sachs Group dropped their price target on shares of A. O. Smith from $69.00 to $61.00 and set a "sell" rating for the company in a research report on Monday, April 13th. Robert W. Baird set a $77.00 price target on shares of A. O. Smith in a research report on Friday, January 30th. Jefferies Financial Group set a $75.00 price objective on shares of A. O. Smith and gave the company a "hold" rating in a research note on Friday, January 9th. Finally, Citigroup decreased their target price on shares of A. O. Smith from $78.00 to $74.00 and set a "neutral" rating on the stock in a research note on Monday, April 13th. Two equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $74.89.

A. O. Smith Stock Down 1.7%

Shares of NYSE AOS traded down $1.09 during trading on Thursday, hitting $62.59. 468,965 shares of the company traded hands, compared to its average volume of 1,428,415. The business's fifty day moving average is $67.99 and its 200 day moving average is $69.01. A. O. Smith has a fifty-two week low of $61.89 and a fifty-two week high of $81.86. The firm has a market capitalization of $8.66 billion, a price-to-earnings ratio of 16.16, a P/E/G ratio of 1.35 and a beta of 1.35. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.94 and a current ratio of 1.50.

A. O. Smith (NYSE:AOS - Get Free Report) last posted its earnings results on Thursday, April 30th. The industrial products company reported $0.85 EPS for the quarter, missing the consensus estimate of $0.94 by ($0.09). A. O. Smith had a return on equity of 29.51% and a net margin of 14.26%.The business had revenue of $945.60 million for the quarter, compared to the consensus estimate of $976.86 million. During the same period in the previous year, the firm earned $0.95 earnings per share. The company's revenue was down 1.9% on a year-over-year basis. A. O. Smith has set its FY 2026 guidance at 3.600-3.900 EPS. Equities research analysts predict that A. O. Smith will post 3.98 earnings per share for the current fiscal year.

A. O. Smith Dividend Announcement

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

Insider Activity at A. O. Smith

In related news, SVP Darrell W. Schuh sold 1,104 shares of the company's stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $74.39, for a total transaction of $82,126.56. Following the sale, the senior vice president directly owned 2,201 shares in the company, valued at approximately $163,732.39. This represents a 33.40% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders own 0.50% of the company's stock.

Hedge Funds Weigh In On A. O. Smith

A number of institutional investors have recently made changes to their positions in AOS. Los Angeles Capital Management LLC bought a new position in shares of A. O. Smith during the 4th quarter valued at $35,000. Larson Financial Group LLC lifted its position in shares of A. O. Smith by 67.9% in the 3rd quarter. Larson Financial Group LLC now owns 487 shares of the industrial products company's stock worth $36,000 after purchasing an additional 197 shares during the period. Johnson Financial Group Inc. lifted its position in shares of A. O. Smith by 398.1% in the 3rd quarter. Johnson Financial Group Inc. now owns 782 shares of the industrial products company's stock worth $57,000 after purchasing an additional 625 shares during the period. EverSource Wealth Advisors LLC lifted its position 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 worth $63,000 after purchasing an additional 422 shares during the period. Finally, Headlands Technologies LLC purchased a new stake in shares of A. O. Smith in the 2nd quarter worth about $72,000. Institutional investors own 76.10% of the company's stock.

A. O. Smith Company Profile

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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