Zacks Research Predicts Stronger Earnings for A. O. Smith

A. O. Smith Corporation (NYSE:AOS) – Analysts at Zacks Research lifted their Q3 2027 earnings per share estimates for A. O. Smith in a research report issued to clients and investors on Wednesday, January 21st. Zacks Research analyst Team now forecasts that the industrial products company will post earnings of $1.11 per share for the quarter, up from their prior estimate of $1.10. The consensus estimate for A. O. Smith’s current full-year earnings is $3.76 per share.

Several other research firms have also issued reports on AOS. Citigroup dropped their price target on shares of A. O. Smith from $77.00 to $72.00 and set a “neutral” rating for the company in a research report on Wednesday, October 29th. Wall Street Zen upgraded A. O. Smith from a “hold” rating to a “buy” rating in a research report on Saturday, October 18th. Stifel Nicolaus set a $80.00 price target on A. O. Smith and gave the company a “buy” rating in a research note on Wednesday, October 29th. Weiss Ratings reiterated a “hold (c)” rating on shares of A. O. Smith in a research note on Wednesday, December 24th. Finally, Jefferies Financial Group set a $75.00 price objective on A. O. Smith and gave the company a “hold” rating in a report on Friday, January 9th. Two equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $76.50.

A. O. Smith Price Performance

NYSE:AOS opened at $72.45 on Monday. The company has a debt-to-equity ratio of 0.09, a quick ratio of 0.95 and a current ratio of 1.54. The company has a 50-day moving average of $68.04 and a 200-day moving average of $69.62. A. O. Smith has a 52 week low of $58.83 and a 52 week high of $77.31. The company has a market capitalization of $10.09 billion, a price-to-earnings ratio of 19.53, a PEG ratio of 1.47 and a beta of 1.35.

A. O. Smith (NYSE:AOS) last posted its quarterly earnings results on Tuesday, October 28th. The industrial products company reported $0.94 earnings per share for the quarter, topping analysts’ consensus estimates of $0.89 by $0.05. The firm had revenue of $942.50 million for the quarter, compared to the consensus estimate of $946.33 million. A. O. Smith had a net margin of 13.85% and a return on equity of 29.34%. The business’s revenue was up 4.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.82 earnings per share. A. O. Smith has set its FY 2025 guidance at 3.700-3.850 EPS.

A. O. Smith Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, February 17th. Investors of record on Friday, January 30th will be issued a $0.36 dividend. This represents a $1.44 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend is Friday, January 30th. A. O. Smith’s payout ratio is currently 38.81%.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its stake in A. O. Smith by 1.3% in the third quarter. Vanguard Group Inc. now owns 14,412,842 shares of the industrial products company’s stock valued at $1,058,047,000 after buying an additional 182,876 shares during the period. Impax Asset Management Group plc increased its stake in shares of A. O. Smith by 3.4% in the 3rd quarter. Impax Asset Management Group plc now owns 4,850,158 shares of the industrial products company’s stock valued at $356,050,000 after acquiring an additional 157,856 shares during the last quarter. American Century Companies Inc. raised its position in shares of A. O. Smith by 54.2% in the 3rd quarter. American Century Companies Inc. now owns 3,208,831 shares of the industrial products company’s stock valued at $235,560,000 after acquiring an additional 1,128,543 shares during the period. First Trust Advisors LP boosted its stake 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 acquiring an additional 109,654 shares during the last quarter. Finally, ProShare Advisors LLC boosted its stake in A. O. Smith by 3.3% during the 2nd quarter. ProShare Advisors LLC now owns 2,500,230 shares of the industrial products company’s stock worth $163,940,000 after acquiring an additional 79,696 shares during the last quarter. 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.