Zacks Research Expects Increased Earnings for A. O. Smith

Key Points

• Zacks Research raised its FY2026 EPS estimate for A. O. Smith to $3.79 from $3.76, above the consensus estimate of $3.74, while maintaining a “Hold” rating.
• Analyst sentiment remains mixed but leans toward “Hold,” with a consensus price target of $67.75; current targets range from $60 to $75.
• A. O. Smith recently reported quarterly EPS of $1.03, beating estimates by $0.07, and pays a quarterly dividend of $0.36 per share, representing a 2.3% yield.

A. O. Smith Corporation (NYSE:AOS - Free Report) - Equities research analysts at Zacks Research increased their FY2026 EPS estimates for A. O. Smith in a report released on Thursday, August 20th. Zacks Research analyst Team now expects that the industrial products company will post earnings of $3.79 per share for the year, up from their prior forecast of $3.76. Zacks Research has a "Hold" rating on the stock. The consensus estimate for A. O. Smith's current full-year earnings is $3.74 per share. Zacks Research also issued estimates for A. O. Smith's Q4 2026 earnings at $0.96 EPS and Q4 2027 earnings at $0.99 EPS.

A number of other research analysts have also recently commented on AOS. JPMorgan Chase & Co. reaffirmed an "underweight" rating and set a $60.00 target price (down from $65.00) on shares of A. O. Smith in a research note on Friday, May 15th. Oppenheimer set a $75.00 price objective on A. O. Smith and gave the company an "outperform" rating in a report on Wednesday, June 10th. Stifel Nicolaus cut their price objective on A. O. Smith from $76.00 to $70.00 and set a "buy" rating on the stock in a research report on Friday, July 31st. DA Davidson set a $67.00 target price on A. O. Smith and gave the stock a "neutral" rating in a research note on Monday, May 4th. Finally, Robert W. Baird set a $70.00 target price on A. O. Smith in a research report on Friday, May 1st. Two analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $67.75.

A. O. Smith Stock Performance

A. O. Smith stock opened at $63.09 on Monday. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.59 and a quick ratio of 1.04. The firm has a market capitalization of $8.57 billion, a P/E ratio of 17.53, a price-to-earnings-growth ratio of 1.41 and a beta of 1.17. A. O. Smith has a 1-year low of $54.16 and a 1-year high of $81.86. The company's 50-day moving average is $61.08 and its 200 day moving average is $64.36.

A. O. Smith (NYSE:AOS - Get Free Report) last released its earnings results on Thursday, July 30th. The industrial products company reported $1.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.96 by $0.07. A. O. Smith had a net margin of 13.15% and a return on equity of 27.88%. The firm had revenue of $1 billion during the quarter, compared to analyst estimates of $994.89 million. During the same quarter last year, the business earned $1.07 EPS. The business's revenue was down .7% on a year-over-year basis. A. O. Smith has set its FY 2026 guidance at 3.700-3.850 EPS.

A. O. Smith Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, August 17th. Stockholders of record on Friday, July 31st were paid a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend was Friday, July 31st. A. O. Smith's payout ratio is currently 40.00%.

Institutional Trading of A. O. Smith

A number of large investors have recently modified their holdings of AOS. Assenagon Asset Management S.A. grew its holdings in A. O. Smith by 5,521.8% during the 2nd quarter. Assenagon Asset Management S.A. now owns 489,264 shares of the industrial products company's stock worth $30,687,000 after acquiring an additional 480,561 shares in the last quarter. ProShare Advisors LLC increased its position in A. O. Smith by 2.6% during the 4th quarter. ProShare Advisors LLC now owns 2,344,631 shares of the industrial products company's stock valued at $156,809,000 after purchasing an additional 60,260 shares during the period. ING Groep NV bought a new stake in shares of A. O. Smith in the 4th quarter valued at about $980,000. IFG Advisory LLC raised its holdings in shares of A. O. Smith by 54.4% in the 4th quarter. IFG Advisory LLC now owns 50,474 shares of the industrial products company's stock valued at $3,376,000 after purchasing an additional 17,792 shares in the last quarter. Finally, Nomura Asset Management Co. Ltd. lifted its position in shares of A. O. Smith by 3.8% in the 4th quarter. Nomura Asset Management Co. Ltd. now owns 1,179,709 shares of the industrial products company's stock worth $78,899,000 after purchasing an additional 43,320 shares during the period. Hedge funds and other institutional investors own 76.10% of the company's stock.

About A. O. Smith

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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