Q3 Earnings Forecast for A. O. Smith Issued By DA Davidson

Key Points

• DA Davidson forecasts A. O. Smith's Q3 2025 EPS at $0.91, with full-year earnings estimates of $3.76, $3.85 for FY2025, and $4.30 for FY2026.
• A. O. Smith reported $1.07 EPS for Q2, surpassing expectations of $0.97, but saw a 1.3% decline in revenue year-over-year.
• The company declared a quarterly dividend of $0.34 per share, yielding 1.91%, with a payout ratio of 37.88%.

A. O. Smith Corporation (NYSE:AOS - Free Report) - Investment analysts at DA Davidson issued their Q3 2025 earnings per share (EPS) estimates for A. O. Smith in a note issued to investors on Monday, July 28th. DA Davidson analyst M. Summerville expects that the industrial products company will post earnings of $0.91 per share for the quarter. The consensus estimate for A. O. Smith's current full-year earnings is $3.76 per share. DA Davidson also issued estimates for A. O. Smith's FY2025 earnings at $3.85 EPS and FY2026 earnings at $4.30 EPS.

AOS has been the topic of a number of other reports. UBS Group upped their price target on A. O. Smith from $74.00 to $76.00 and gave the company a "neutral" rating in a report on Monday. Robert W. Baird upped their price objective on A. O. Smith from $76.00 to $82.00 and gave the company a "neutral" rating in a research report on Friday, July 25th. JPMorgan Chase & Co. started coverage on A. O. Smith in a research report on Tuesday, June 24th. They set a "neutral" rating and a $70.00 price objective for the company. Citigroup reduced their price target on 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. Finally, Oppenheimer upped their price target on A. O. Smith from $82.00 to $88.00 and gave the stock an "outperform" rating in a research report on Monday. Five investment analysts have rated the stock with a hold rating and three have given a buy rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $77.43.

A. O. Smith Stock Performance

Shares of NYSE:AOS traded down $0.38 during midday trading on Tuesday, reaching $70.41. 1,255,064 shares of the company's stock traded hands, compared to its average volume of 1,590,907. The company has a market cap of $10.01 billion, a price-to-earnings ratio of 19.61, a P/E/G ratio of 1.54 and a beta of 1.20. 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 one year low of $58.83 and a one year high of $92.06. The stock has a 50 day moving average of $66.99 and a 200 day moving average of $66.84.

A. O. Smith (NYSE:AOS - Get Free Report) last released its earnings results on Thursday, July 24th. The industrial products company reported $1.07 EPS for the quarter, topping 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 for the quarter, compared to the consensus estimate of $997.89 million. During the same period in the previous year, the company posted $1.06 earnings per share. The company's revenue for the quarter was down 1.3% compared to the same quarter last year.

Hedge Funds Weigh In On A. O. Smith

Several institutional investors have recently added to or reduced their stakes in the company. Teacher Retirement System of Texas lifted its stake in shares of A. O. Smith by 64.4% in the 2nd quarter. Teacher Retirement System of Texas now owns 28,832 shares of the industrial products company's stock valued at $1,891,000 after purchasing an additional 11,294 shares during the last quarter. Y Intercept Hong Kong Ltd bought a new stake in shares of A. O. Smith in the 2nd quarter valued at approximately $9,411,000. Oppenheimer Asset Management Inc. bought a new stake in shares of A. O. Smith in the 2nd quarter valued at approximately $1,045,000. Kornitzer Capital Management Inc. KS lifted its stake in shares of A. O. Smith by 1.7% in the 2nd quarter. Kornitzer Capital Management Inc. KS now owns 37,500 shares of the industrial products company's stock valued at $2,459,000 after purchasing an additional 618 shares during the last quarter. Finally, AlphaQuest LLC lifted its stake in shares of A. O. Smith by 1,118.7% in the 2nd quarter. AlphaQuest LLC now owns 38,583 shares of the industrial products company's stock valued at $2,530,000 after purchasing an additional 35,417 shares during the last quarter. Hedge funds and other institutional investors own 76.10% of the company's stock.

Insiders Place Their Bets

In other A. O. Smith 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 transaction, the chairman owned 100,647 shares in the company, valued at $7,172,105.22. This trade represents a 18.07% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. 0.76% of the stock is owned by corporate insiders.

A. O. Smith Dividend Announcement

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

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.