Zacks Research Has Weak Outlook for A. O. Smith Q3 Earnings

Key Points

• Zacks Research lowered its Q3 2027 EPS estimate for A. O. Smith to $1.04 from $1.05 and kept a Strong Sell rating on the stock.
• Recent results were weaker than expected: A. O. Smith reported Q1 earnings of $0.85 per share, missing estimates of $0.94, while revenue also came in below forecast at $945.6 million.
• Wall Street sentiment remains cautious, with the stock averaging a “Reduce” rating and a consensus target price of $69.33, even as the company offers a 2.3% dividend yield.

A. O. Smith Corporation (NYSE:AOS - Free Report) - Analysts at Zacks Research dropped their Q3 2027 earnings per share estimates for A. O. Smith in a report issued on Monday, June 29th. Zacks Research analyst Team now forecasts that the industrial products company will post earnings of $1.04 per share for the quarter, down from their previous estimate of $1.05. Zacks Research has a "Strong Sell" rating on the stock. The consensus estimate for A. O. Smith's current full-year earnings is $3.77 per share.

A. O. Smith (NYSE:AOS - Get Free Report) last posted its earnings results on Thursday, April 30th. The industrial products company reported $0.85 earnings per share for the quarter, missing the consensus estimate of $0.94 by ($0.09). A. O. Smith had a net margin of 13.84% and a return on equity of 28.42%. The firm had revenue of $945.60 million during the quarter, compared to analyst estimates of $974.06 million. During the same period last year, the company posted $0.95 EPS. The firm's revenue for the quarter was down 1.9% on a year-over-year basis. A. O. Smith has set its FY 2026 guidance at 3.600-3.900 EPS.

Several other research firms also recently weighed in on AOS. The Goldman Sachs Group dropped their target price on shares of A. O. Smith from $69.00 to $61.00 and set a "sell" rating for the company in a report on Monday, April 13th. Stifel Nicolaus set a $75.00 price objective on shares of A. O. Smith in a research note on Friday, May 1st. DA Davidson set a $67.00 price objective on A. O. Smith and gave the stock a "neutral" rating in a research report on Monday, May 4th. Oppenheimer set a $75.00 target price on A. O. Smith and gave the company an "outperform" rating in a research note on Wednesday, June 10th. Finally, JPMorgan Chase & Co. reiterated an "underweight" rating and set a $60.00 target price (down from $65.00) on shares of A. O. Smith in a report on Friday, May 15th. Two equities 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 MarketBeat, the company currently has an average rating of "Reduce" and an average target price of $69.33.

A. O. Smith Price Performance

A. O. Smith stock opened at $62.84 on Wednesday. A. O. Smith has a 52 week low of $54.16 and a 52 week high of $81.86. The company has a quick ratio of 1.00, a current ratio of 1.56 and a debt-to-equity ratio of 0.31. The firm's 50-day simple moving average is $59.43 and its 200 day simple moving average is $66.59. The firm has a market capitalization of $8.66 billion, a PE ratio of 16.71, a P/E/G ratio of 1.36 and a beta of 1.18.

Institutional Trading of A. O. Smith

Hedge funds have recently bought and sold shares of the company. JPMorgan Chase & Co. raised its holdings in shares of A. O. Smith by 26.4% in the 3rd quarter. JPMorgan Chase & Co. now owns 665,793 shares of the industrial products company's stock worth $48,876,000 after purchasing an additional 139,117 shares during the period. Earnest Partners LLC grew its holdings in shares of A. O. Smith by 1.8% during the 3rd quarter. Earnest Partners LLC now owns 2,082,982 shares of the industrial products company's stock worth $152,912,000 after purchasing an additional 36,122 shares during the period. First Trust Advisors LP increased its position in A. O. Smith by 4.6% during the 3rd quarter. First Trust Advisors LP now owns 2,508,947 shares of the industrial products company's stock worth $184,182,000 after purchasing an additional 109,654 shares in the last quarter. Handelsbanken Fonder AB increased its position in A. O. Smith by 128.5% during the 3rd quarter. Handelsbanken Fonder AB now owns 53,700 shares of the industrial products company's stock worth $3,942,000 after purchasing an additional 30,200 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its position in A. O. Smith by 2.1% during the 3rd quarter. Dimensional Fund Advisors LP now owns 1,871,694 shares of the industrial products company's stock worth $137,393,000 after purchasing an additional 38,694 shares in the last quarter. Institutional investors and hedge funds own 76.10% of the company's stock.

A. O. Smith Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, May 15th. Stockholders 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 dividend on an annualized basis and a dividend yield of 2.3%. A. O. Smith's payout ratio is 38.30%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.