Analysts Offer Predictions for A. O. Smith FY2025 Earnings

Key Points

• Zacks Research has raised its FY2025 earnings estimate for A. O. Smith to $3.80 per share, slightly above previous forecasts and higher than the current consensus estimate of $3.76 per share.
• A. O. Smith's recent quarterly earnings report showed earnings of $1.07 per share, surpassing analysts' expectations of $0.97, but revenue was down by 1.3% year-over-year.
• The company has declared a quarterly dividend of $0.34, equating to an annualized yield of 1.9%, with a dividend payout ratio of 37.88%.

A. O. Smith Corporation (NYSE:AOS - Free Report) - Equities research analysts at Zacks Research lifted their FY2025 earnings per share estimates for shares of A. O. Smith in a report issued on Monday, September 15th. Zacks Research analyst Team now forecasts that the industrial products company will post earnings of $3.80 per share for the year, up from their previous estimate of $3.79. 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 Q1 2026 earnings at $0.98 EPS, Q2 2026 earnings at $1.09 EPS, Q4 2026 earnings at $1.01 EPS, FY2026 earnings at $4.01 EPS, Q1 2027 earnings at $1.10 EPS, Q2 2027 earnings at $1.24 EPS and FY2027 earnings at $4.53 EPS.

A. O. Smith (NYSE:AOS - Get Free Report) last issued its quarterly earnings data on Thursday, July 24th. The industrial products company reported $1.07 earnings per share (EPS) for the quarter, beating the consensus estimate 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 business had revenue of $1.01 billion during the quarter, compared to analyst estimates of $997.89 million. During the same period in the previous year, the firm earned $1.06 EPS. A. O. Smith's quarterly revenue was down 1.3% compared to the same quarter last year. A. O. Smith has set its FY 2025 guidance at 3.700-3.900 EPS.

AOS has been the topic of several other research reports. JPMorgan Chase & Co. started coverage on A. O. Smith in a research note on Tuesday, June 24th. They issued a "neutral" rating and a $70.00 target price on the stock. Robert W. Baird boosted their target price on A. O. Smith from $76.00 to $82.00 and gave the company a "neutral" rating in a research note on Friday, July 25th. UBS Group restated a "neutral" rating and issued a $76.00 target price (up previously from $74.00) on shares of A. O. Smith in a research note on Monday, July 28th. Oppenheimer boosted their target price on A. O. Smith from $82.00 to $88.00 and gave the company an "outperform" rating in a research note on Monday, July 28th. Finally, Stifel Nicolaus boosted their target price on A. O. Smith from $78.00 to $81.00 and gave the company a "buy" rating in a research note on Monday, July 21st. Two analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $77.43.

A. O. Smith Stock Down 0.0%

NYSE AOS traded down $0.01 during trading on Tuesday, hitting $73.06. The stock had a trading volume of 2,025,689 shares, compared to its average volume of 1,007,065. The company has a market capitalization of $10.24 billion, a PE ratio of 20.35, a P/E/G ratio of 1.59 and a beta of 1.25. The company's 50-day moving average price is $71.66 and its two-hundred day moving average price is $67.90. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.03 and a current ratio of 1.65. A. O. Smith has a 12 month low of $58.83 and a 12 month high of $92.06.

A. O. Smith Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 15th. Stockholders of record on Thursday, July 31st were paid a $0.34 dividend. The ex-dividend date of this dividend was Thursday, July 31st. This represents a $1.36 annualized dividend and a dividend yield of 1.9%. A. O. Smith's dividend payout ratio is presently 37.88%.

Insider Buying and Selling

In related news, Chairman Kevin J. Wheeler sold 22,200 shares of the firm's stock in a transaction that occurred on Wednesday, July 30th. The stock was sold at an average price of $71.26, for a total transaction of $1,581,972.00. Following the completion of the sale, the chairman owned 100,647 shares of the company's stock, valued at $7,172,105.22. This trade represents a 18.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 0.76% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On A. O. Smith

Large investors have recently added to or reduced their stakes in the business. Cetera Investment Advisers grew its stake in A. O. Smith by 1.2% in the fourth quarter. Cetera Investment Advisers now owns 27,307 shares of the industrial products company's stock valued at $1,863,000 after acquiring an additional 315 shares during the period. Focus Partners Wealth grew its stake in A. O. Smith by 107.7% in the fourth quarter. Focus Partners Wealth now owns 5,606 shares of the industrial products company's stock valued at $382,000 after acquiring an additional 2,907 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in A. O. Smith by 139.8% in the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 60,963 shares of the industrial products company's stock valued at $4,158,000 after acquiring an additional 35,538 shares during the period. Man Group plc grew its stake in A. O. Smith by 82.2% in the fourth quarter. Man Group plc now owns 151,182 shares of the industrial products company's stock valued at $10,312,000 after acquiring an additional 68,214 shares during the period. Finally, Quantinno Capital Management LP lifted its holdings in shares of A. O. Smith by 162.8% in the fourth quarter. Quantinno Capital Management LP now owns 58,489 shares of the industrial products company's stock valued at $3,990,000 after purchasing an additional 36,234 shares in the last quarter. Institutional investors and hedge funds own 76.10% of the company's stock.

A. O. Smith Company Profile

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.