Analysts Set Expectations 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 researchers at Zacks Research boosted their FY2025 earnings estimates for shares of A. O. Smith in a research report issued on Monday, September 15th. Zacks Research analyst Team now forecasts that the industrial products company will earn $3.80 per share for the year, up from their prior 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.

Several other equities analysts also recently commented on AOS. Robert W. Baird increased their price objective on shares of A. O. Smith from $76.00 to $82.00 and gave the company a "neutral" rating in a research note on Friday, July 25th. Stifel Nicolaus increased their price objective on shares of A. O. Smith from $78.00 to $81.00 and gave the company a "buy" rating in a research note on Monday, July 21st. Weiss Ratings reissued a "hold (c+)" rating on shares of A. O. Smith in a research note on Saturday. Wall Street Zen raised shares of A. O. Smith from a "hold" rating to a "buy" rating in a research note on Friday, August 22nd. Finally, UBS Group reissued a "neutral" rating and issued a $76.00 price objective (up previously from $74.00) on shares of A. O. Smith in a research note on Monday, July 28th. Two research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $77.43.

A. O. Smith Price Performance

Shares of NYSE:AOS opened at $73.32 on Tuesday. The company has a market cap of $10.27 billion, a price-to-earnings ratio of 20.42, a PEG ratio of 1.58 and a beta of 1.25. The company has a debt-to-equity ratio of 0.15, a current ratio of 1.65 and a quick ratio of 1.03. The firm has a 50 day simple moving average of $71.36 and a 200 day simple moving average of $67.72. A. O. Smith has a one year low of $58.83 and a one year high of $92.06.

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

A. O. Smith Dividend Announcement

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

Insider Buying and Selling

In other A. O. Smith news, Chairman Kevin J. Wheeler sold 22,200 shares of the firm's stock in a transaction on Wednesday, July 30th. The shares were 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 0.76% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Vermillion & White Wealth Management Group LLC acquired a new position in shares of A. O. Smith during the first quarter valued at about $26,000. True Wealth Design LLC grew its holdings in shares of A. O. Smith by 44,400.0% during the second quarter. True Wealth Design LLC now owns 445 shares of the industrial products company's stock valued at $29,000 after buying an additional 444 shares during the last quarter. TD Private Client Wealth LLC grew its holdings in shares of A. O. Smith by 143.7% during the second quarter. TD Private Client Wealth LLC now owns 446 shares of the industrial products company's stock valued at $29,000 after buying an additional 263 shares during the last quarter. National Pension Service grew its holdings in shares of A. O. Smith by 74.8% during the first quarter. National Pension Service now owns 458 shares of the industrial products company's stock valued at $30,000 after buying an additional 196 shares during the last quarter. Finally, Loomis Sayles & Co. L P acquired a new position in shares of A. O. Smith during the second quarter valued at about $30,000. 76.10% of the stock is currently owned by institutional investors and hedge funds.

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.

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