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

Key Points

• Zacks Research has revised its Q3 2025 EPS estimate for A. O. Smith, lowering it from $0.89 to $0.87 per share.
• Despite the negative outlook, several analysts have increased their price targets for A. O. Smith, with Oppenheimer now setting a target of $88.00 and maintaining an "outperform" rating.
• A. O. Smith recently paid a quarterly dividend of $0.34 per share, yielding 1.9%, with a payout ratio of 37.88%.

A. O. Smith Corporation (NYSE:AOS - Free Report) - Equities research analysts at Zacks Research decreased their Q3 2025 earnings per share (EPS) estimates for shares of A. O. Smith in a note issued to investors on Thursday, August 14th. Zacks Research analyst Team now expects that the industrial products company will earn $0.87 per share for the quarter, down from their previous forecast of $0.89. 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 $0.97 EPS, Q3 2026 earnings at $0.92 EPS and Q1 2027 earnings at $1.09 EPS.

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

AOS has been the topic of a number of other reports. UBS Group reaffirmed a "neutral" rating and set a $76.00 price objective (up from $74.00) on shares of A. O. Smith in a report on Monday, July 28th. Stifel Nicolaus lifted their price objective on A. O. Smith from $78.00 to $81.00 and gave the company a "buy" rating in a report on Monday, July 21st. Wall Street Zen raised A. O. Smith from a "hold" rating to a "buy" rating in a report on Friday. JPMorgan Chase & Co. started coverage on A. O. Smith in a report on Tuesday, June 24th. They set a "neutral" rating and a $70.00 price objective on the stock. Finally, Oppenheimer upped their price objective on shares of A. O. Smith from $82.00 to $88.00 and gave the stock an "outperform" rating in a research note on Monday, July 28th. Two analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $77.43.

A. O. Smith Price Performance

NYSE AOS traded up $1.79 during trading on Monday, reaching $73.54. 674,080 shares of the company traded hands, compared to its average volume of 1,211,578. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.03 and a current ratio of 1.65. The stock's 50 day moving average price is $69.12 and its two-hundred day moving average price is $67.01. The company has a market cap of $10.31 billion, a price-to-earnings ratio of 20.48, a P/E/G ratio of 1.56 and a beta of 1.22. A. O. Smith has a 1-year low of $58.83 and a 1-year high of $92.06.

Hedge Funds Weigh In On A. O. Smith

A number of large investors have recently modified their holdings of AOS. Vermillion & White Wealth Management Group LLC acquired a new position in shares of A. O. Smith during the first quarter worth approximately $26,000. TD Private Client Wealth LLC lifted its position 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 worth $29,000 after purchasing an additional 263 shares in the last quarter. True Wealth Design LLC lifted its position 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 worth $29,000 after purchasing an additional 444 shares in the last quarter. National Pension Service lifted its position 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 worth $30,000 after purchasing an additional 196 shares in the last quarter. Finally, Loomis Sayles & Co. L P acquired a new position in shares of A. O. Smith during the second quarter worth approximately $30,000. 76.10% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at A. O. Smith

In other news, Chairman Kevin J. Wheeler sold 22,200 shares of the firm's stock in a transaction that occurred on Wednesday, July 30th. The shares were sold at an average price of $71.26, for a total transaction of $1,581,972.00. Following the completion of the sale, the chairman owned 100,647 shares of the company's stock, 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 filing with the SEC, which is accessible through this link. Insiders own 0.76% of the company's stock.

A. O. Smith Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 15th. Stockholders of record on Thursday, July 31st were issued a dividend of $0.34 per share. The ex-dividend date of this dividend was Thursday, July 31st. This represents a $1.36 annualized dividend and a dividend yield of 1.8%. A. O. Smith's dividend payout ratio (DPR) is presently 37.88%.

About A. O. Smith

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.