Q3 EPS Estimates for A. O. Smith Increased by Zacks Research

Key Points

• Zacks Research slightly raised its Q3 2027 EPS estimate for A. O. Smith to $1.05 from $1.04, and also lifted its Q4 2027 estimate to $1.02. Despite the higher forecast, Zacks still rates the stock Strong Sell.
• The broader analyst picture remains cautious: A. O. Smith has a consensus rating of Reduce with an average price target of $69.89. Recent moves included target cuts from Citigroup and JPMorgan, while only a few firms maintain Buy or Outperform views.
• A. O. Smith’s latest results were weaker than expected, with Q1 EPS of $0.85 versus $0.94 estimated and revenue of $945.6 million versus $974.1 million expected. The company also pays a quarterly dividend of $0.36 per share, equal to a 2.4% yield.

A. O. Smith Corporation (NYSE:AOS - Free Report) - Investment analysts at Zacks Research raised their Q3 2027 earnings per share (EPS) estimates for shares of A. O. Smith in a research report issued to clients and investors on Monday, June 8th. Zacks Research analyst Team now anticipates that the industrial products company will post earnings per share of $1.05 for the quarter, up from their previous estimate of $1.04. Zacks Research currently has a "Strong Sell" rating on the stock. The consensus estimate for A. O. Smith's current full-year earnings is $3.78 per share. Zacks Research also issued estimates for A. O. Smith's Q4 2027 earnings at $1.02 EPS.

Several other equities research analysts also recently commented on AOS. Robert W. Baird set a $70.00 target price on A. O. Smith in a report on Friday, May 1st. Citigroup dropped their target price on A. O. Smith from $74.00 to $65.00 and set a "neutral" rating on the stock in a report on Monday, May 4th. JPMorgan Chase & Co. restated an "underweight" rating and set a $60.00 price objective (down from $65.00) on shares of A. O. Smith in a report on Friday, May 15th. Oppenheimer restated an "outperform" rating and set a $80.00 price objective on shares of A. O. Smith in a report on Friday, May 1st. Finally, Weiss Ratings downgraded A. O. Smith from a "hold (c)" rating to a "hold (c-)" rating in a report on Wednesday, May 27th. Two research analysts have rated the stock with a Buy rating, six have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and an average price target of $69.89.

A. O. Smith Stock Performance

Shares of NYSE:AOS opened at $59.22 on Wednesday. The company has a market cap of $8.16 billion, a P/E ratio of 15.75, a PEG ratio of 1.26 and a beta of 1.18. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.00 and a current ratio of 1.56. A. O. Smith has a one year low of $54.16 and a one year high of $81.86. The business's 50-day simple moving average is $61.11 and its 200 day simple moving average is $67.29.

A. O. Smith (NYSE:AOS - Get Free Report) last announced 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). The company had revenue of $945.60 million for the quarter, compared to analysts' expectations of $974.06 million. A. O. Smith had a net margin of 13.84% and a return on equity of 28.42%. The business's quarterly revenue was down 1.9% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.95 earnings per share. A. O. Smith has set its FY 2026 guidance at 3.600-3.900 EPS.

A. O. Smith Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Thursday, April 30th were issued a dividend of $0.36 per share. The ex-dividend date was Thursday, April 30th. This represents a $1.44 annualized dividend and a yield of 2.4%. A. O. Smith's payout ratio is currently 38.30%.

Institutional Investors Weigh In On A. O. Smith

Hedge funds and other institutional investors have recently bought and sold shares of the business. Creative Financial Designs Inc. ADV increased its holdings in shares of A. O. Smith by 3,481.8% in the 4th quarter. Creative Financial Designs Inc. ADV now owns 394 shares of the industrial products company's stock valued at $26,000 after acquiring an additional 383 shares during the last quarter. Rothschild Investment LLC increased its holdings in shares of A. O. Smith by 3,125.0% in the 3rd quarter. Rothschild Investment LLC now owns 387 shares of the industrial products company's stock valued at $28,000 after acquiring an additional 375 shares during the last quarter. Torren Management LLC bought a new stake in shares of A. O. Smith in the 4th quarter valued at approximately $31,000. Eagle Bay Advisors LLC bought a new stake in shares of A. O. Smith in the 4th quarter valued at approximately $32,000. Finally, Los Angeles Capital Management LLC bought a new stake in shares of A. O. Smith in the 4th quarter valued at approximately $35,000. 76.10% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting A. O. Smith

Here are the key news stories impacting A. O. Smith this week:

• Positive Sentiment: GuruFocus highlighted A. O. Smith as still undervalued, with a GF Score of 84/100, which can support investor interest in the shares. A.O. Smith Corp (AOS) Stock Up 3.3% and Still Undervalued -- GF Score: 84/100
• Neutral Sentiment: Zacks Research nudged up its Q3 2027 EPS estimate to $1.05 from $1.04 and Q4 2027 EPS to $1.02 from $1.01, showing a slightly better longer-term outlook, though the firm still rates the stock Strong Sell.
• Neutral Sentiment: Zacks also trimmed several near-term EPS forecasts for A. O. Smith, including FY2026 to $3.76 from $3.79, Q2 2026 to $1.00 from $1.01, Q4 2026 to $0.95 from $0.96, and Q1 2027 to $0.97 from $0.98, which suggests some pressure on earnings expectations but only by small amounts.
• Neutral Sentiment: A. O. Smith was added to Zacks Research’s Strong Sell list, reinforcing a cautious analyst stance even as some forward estimates moved slightly higher. New Strong Sell Stocks for June 10th

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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