Zacks Research Has Weak Forecast for A. O. Smith Q2 Earnings

Key Points

• Zacks Research lowered its Q2 2026 EPS estimate for A. O. Smith to $1.01 from $1.10 and maintained a Strong Sell rating on the stock.
• The analyst firm also trimmed full-year and longer-term earnings forecasts, including FY2026 EPS to $3.79 and FY2027/FY2028 estimates to $4.12 and $4.61, signaling weaker expected profit growth.
• A. O. Smith recently missed quarterly expectations, reporting $0.85 EPS versus $0.94 expected and revenue of $945.6 million versus $974.06 million projected, adding to concerns about near-term performance.

A. O. Smith Corporation (NYSE:AOS - Free Report) - Zacks Research cut their Q2 2026 earnings per share estimates for shares of A. O. Smith in a report issued on Thursday, May 21st. Zacks Research analyst Team now forecasts that the industrial products company will post earnings of $1.01 per share for the quarter, down from their previous forecast of $1.10. Zacks Research 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 Q3 2026 earnings at $0.96 EPS, FY2026 earnings at $3.79 EPS, Q1 2027 earnings at $0.98 EPS, Q2 2027 earnings at $1.09 EPS, Q3 2027 earnings at $1.04 EPS, Q4 2027 earnings at $1.01 EPS, FY2027 earnings at $4.12 EPS, Q1 2028 earnings at $1.09 EPS and FY2028 earnings at $4.61 EPS.

Other equities analysts have also recently issued research reports about the company. JPMorgan Chase & Co. restated an "underweight" rating and issued a $60.00 price target (down from $65.00) on shares of A. O. Smith in a research report on Friday, May 15th. Stifel Nicolaus set a $75.00 price target on A. O. Smith in a research report on Friday, May 1st. The Goldman Sachs Group dropped their price target on A. O. Smith from $69.00 to $61.00 and set a "sell" rating on the stock in a research report on Monday, April 13th. Oppenheimer restated an "outperform" rating and issued a $80.00 price target on shares of A. O. Smith in a research report on Friday, May 1st. Finally, DA Davidson set a $67.00 price target on A. O. Smith and gave the company a "neutral" rating in a research report on Monday, May 4th. Two research analysts have rated the stock with a Buy rating, six have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, A. O. Smith currently has a consensus rating of "Reduce" and a consensus price target of $69.89.

A. O. Smith Stock Performance

Shares of AOS stock opened at $57.34 on Monday. The stock has a market capitalization of $7.90 billion, a PE ratio of 15.25, a price-to-earnings-growth ratio of 1.26 and a beta of 1.23. A. O. Smith has a 52-week low of $54.16 and a 52-week high of $81.86. The stock's 50-day moving average price is $63.05 and its 200 day moving average price is $67.95. The company has a quick ratio of 1.00, a current ratio of 1.56 and a debt-to-equity ratio of 0.31.

A. O. Smith (NYSE:AOS - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The industrial products company reported $0.85 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.94 by ($0.09). The company had revenue of $945.60 million during the quarter, compared to analyst estimates 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 revenue was down 1.9% on a year-over-year basis. During the same quarter last year, the firm earned $0.95 EPS. A. O. Smith has set its FY 2026 guidance at 3.600-3.900 EPS.

Institutional Investors Weigh In On A. O. Smith

Several institutional investors have recently modified their holdings of AOS. Prospera Financial Services Inc lifted its position in shares of A. O. Smith by 4.0% during the fourth quarter. Prospera Financial Services Inc now owns 3,261 shares of the industrial products company's stock worth $218,000 after purchasing an additional 126 shares during the last quarter. Grey Ledge Advisors LLC lifted its position in shares of A. O. Smith by 1.4% during the fourth quarter. Grey Ledge Advisors LLC now owns 8,966 shares of the industrial products company's stock worth $600,000 after purchasing an additional 128 shares during the last quarter. Eukles Asset Management lifted its position in shares of A. O. Smith by 0.5% during the fourth quarter. Eukles Asset Management now owns 29,240 shares of the industrial products company's stock worth $1,956,000 after purchasing an additional 151 shares during the last quarter. Larson Financial Group LLC lifted its position in shares of A. O. Smith by 31.8% during the fourth quarter. Larson Financial Group LLC now owns 642 shares of the industrial products company's stock worth $43,000 after purchasing an additional 155 shares during the last quarter. Finally, Founders Financial Alliance LLC lifted its position in shares of A. O. Smith by 2.8% during the fourth quarter. Founders Financial Alliance LLC now owns 5,607 shares of the industrial products company's stock worth $375,000 after purchasing an additional 155 shares during the last quarter. Hedge funds and other institutional investors own 76.10% of the company's stock.

Insider Transactions at A. O. Smith

In other A. O. Smith news, SVP Darrell W. Schuh sold 1,104 shares of the business's stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $74.39, for a total transaction of $82,126.56. Following the transaction, the senior vice president owned 2,201 shares in the company, valued at approximately $163,732.39. The trade was a 33.40% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 0.50% of the company's stock.

A. O. Smith Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Thursday, April 30th were given 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 2.5%. A. O. Smith's payout ratio is presently 38.30%.

Key Headlines Impacting A. O. Smith

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

• Negative Sentiment: Zacks Research lowered its FY2026 EPS estimate for A. O. Smith to $3.79 from $4.01 and kept a Strong Sell rating, reinforcing concerns about near-term earnings momentum.
• Negative Sentiment: The firm also cut FY2027 EPS estimates to $4.12 from $4.37 and FY2028 EPS to $4.61 from $4.87, suggesting analysts see slower long-term profit growth.
• Negative Sentiment: Additional estimate reductions were made for several quarters, including Q2 2026, Q3 2026, Q1 2027, Q2 2027, Q3 2027, and Q4 2027, which points to broader earnings caution. Article Title

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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