DA Davidson Has Pessimistic Outlook of AAON FY2025 Earnings

Key Points

• DA Davidson has revised its FY2025 earnings per share (EPS) estimate for AAON down to $1.29, significantly lower than the previous estimate of $2.02, despite maintaining a "Buy" rating for the stock.
• AAON reported a quarterly EPS of $0.22, missing analysts' expectations by $0.09, and its quarterly revenue declined 0.6% year-over-year, amounting to $311.57 million.
• The company recently declared a quarterly dividend of $0.10 per share, reflecting an annualized payout of $0.40 and a yield of 0.5%, with a payout ratio of 27.21%.

AAON, Inc. (NASDAQ:AAON - Free Report) - Equities research analysts at DA Davidson reduced their FY2025 earnings per share (EPS) estimates for AAON in a report issued on Tuesday, August 12th. DA Davidson analyst B. Thielman now forecasts that the construction company will post earnings per share of $1.29 for the year, down from their previous forecast of $2.02. DA Davidson currently has a "Buy" rating and a $105.00 target price on the stock. The consensus estimate for AAON's current full-year earnings is $2.26 per share. DA Davidson also issued estimates for AAON's FY2026 earnings at $2.20 EPS.

AAON (NASDAQ:AAON - Get Free Report) last released its quarterly earnings data on Monday, August 11th. The construction company reported $0.22 EPS for the quarter, missing the consensus estimate of $0.31 by ($0.09). AAON had a return on equity of 15.45% and a net margin of 9.70%. The business had revenue of $311.57 million during the quarter, compared to the consensus estimate of $326.15 million. During the same quarter in the previous year, the business posted $0.62 earnings per share. AAON's quarterly revenue was down .6% compared to the same quarter last year.

Several other equities research analysts also recently commented on AAON. Wall Street Zen upgraded AAON from a "sell" rating to a "hold" rating in a report on Saturday, August 9th. Sidoti upgraded AAON from a "neutral" rating to a "buy" rating and set a $95.00 price objective for the company in a report on Monday, June 16th. Finally, Robert W. Baird cut their price target on AAON from $102.00 to $98.00 and set a "buy" rating for the company in a research note on Tuesday. One research analyst has rated the stock with a hold rating, four have assigned a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Buy" and an average target price of $102.00.

AAON Stock Performance

NASDAQ AAON traded down $3.80 during trading hours on Thursday, hitting $84.49. The company's stock had a trading volume of 75,631 shares, compared to its average volume of 1,013,094. AAON has a 12 month low of $62.00 and a 12 month high of $144.07. The company's 50 day simple moving average is $78.12 and its two-hundred day simple moving average is $88.01. The company has a market cap of $6.89 billion, a P/E ratio of 57.55 and a beta of 0.94. The company has a debt-to-equity ratio of 0.38, a current ratio of 3.10 and a quick ratio of 1.80.

AAON Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, September 26th. Shareholders of record on Friday, September 5th will be paid a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.5%. AAON's dividend payout ratio is currently 27.21%.

Insider Activity

In other news, Director Gordon Douglas Wichman sold 21,302 shares of AAON stock in a transaction dated Tuesday, May 20th. The stock was sold at an average price of $104.48, for a total transaction of $2,225,632.96. Following the transaction, the director directly owned 8,754 shares of the company's stock, valued at $914,617.92. The trade was a 70.87% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 18.70% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in AAON. Champlain Investment Partners LLC purchased a new position in shares of AAON during the 2nd quarter valued at about $87,147,000. Blair William & Co. IL lifted its position in shares of AAON by 86.2% during the 1st quarter. Blair William & Co. IL now owns 2,177,688 shares of the construction company's stock valued at $170,143,000 after buying an additional 1,007,906 shares in the last quarter. Norges Bank purchased a new position in AAON in the 2nd quarter worth approximately $51,441,000. Mawer Investment Management Ltd. purchased a new position in AAON in the 1st quarter worth approximately $44,219,000. Finally, Brown Advisory Inc. purchased a new position in AAON in the 1st quarter worth approximately $41,180,000. 70.81% of the stock is owned by hedge funds and other institutional investors.

About AAON

AAON, Inc, together with its subsidiaries, engages in engineering, manufacturing, marketing, and selling air conditioning and heating equipment in the United States and Canada. The company operates through three segments: AAON Oklahoma, AAON Coil Products, and BASX. It offers rooftop units, data center cooling solutions, cleanroom systems, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps, coils, and controls.

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