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

A. O. Smith Corporation (NYSE:AOS) – Equities researchers at Zacks Research decreased their Q2 2026 earnings estimates for A. O. Smith in a research report issued to clients and investors on Thursday, May 21st. Zacks Research analyst Team now expects that the industrial products company will post earnings per share of $1.01 for the quarter, down from their previous estimate of $1.10. Zacks Research currently 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.

A. O. Smith (NYSE:AOS) last issued its earnings results on Thursday, April 30th. The industrial products company reported $0.85 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.94 by ($0.09). A. O. Smith had a return on equity of 28.42% and a net margin of 13.84%.The business had revenue of $945.60 million during the quarter, compared to the consensus estimate of $974.06 million. During the same period in the prior year, the business earned $0.95 EPS. The business’s revenue 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.

A number of other equities analysts have also recently issued reports on the stock. Citigroup cut their target price on shares of A. O. Smith from $74.00 to $65.00 and set a “neutral” rating on the stock in a report on Monday, May 4th. JPMorgan Chase & Co. reissued an “underweight” rating and issued a $60.00 target price (down from $65.00) on shares of A. O. Smith in a report on Friday, May 15th. DA Davidson set a $67.00 target price on shares of A. O. Smith and gave the stock a “neutral” rating in a report on Monday, May 4th. Robert W. Baird set a $70.00 target price on shares of A. O. Smith in a report on Friday, May 1st. Finally, Stifel Nicolaus set a $75.00 target price on shares of A. O. Smith in a report on Friday, May 1st. Two equities 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, the company currently has a consensus rating of “Reduce” and a consensus price target of $69.89.

A. O. Smith Stock Performance

Shares of NYSE AOS opened at $57.34 on Monday. 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 moving average price is $63.05 and its two-hundred day moving average price is $67.95. A. O. Smith has a 52-week low of $54.16 and a 52-week high of $81.86. The stock has a market capitalization of $7.90 billion, a P/E ratio of 15.25, a P/E/G ratio of 1.26 and a beta of 1.23.

A. O. Smith Dividend Announcement

The firm 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. This represents a $1.44 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend was Thursday, April 30th. A. O. Smith’s payout ratio is 38.30%.

Insider Buying and Selling at A. O. Smith

In other news, SVP Darrell W. Schuh sold 1,104 shares of A. O. Smith 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 sale, the senior vice president owned 2,201 shares of the company’s stock, valued at approximately $163,732.39. The trade was a 33.40% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On A. O. Smith

Hedge funds have recently made changes to their positions in the business. Creative Financial Designs Inc. ADV raised its holdings in shares of A. O. Smith by 3,481.8% during the fourth quarter. Creative Financial Designs Inc. ADV now owns 394 shares of the industrial products company’s stock valued at $26,000 after buying an additional 383 shares during the last quarter. Rothschild Investment LLC raised its holdings in shares of A. O. Smith by 3,125.0% during the third quarter. Rothschild Investment LLC now owns 387 shares of the industrial products company’s stock valued at $28,000 after buying an additional 375 shares during the last quarter. Torren Management LLC bought a new stake in shares of A. O. Smith during the fourth quarter valued at approximately $31,000. Eagle Bay Advisors LLC bought a new stake in shares of A. O. Smith during the fourth quarter valued at approximately $32,000. Finally, Root Financial Partners LLC bought a new stake in shares of A. O. Smith during the third quarter valued at approximately $33,000. Institutional investors own 76.10% of the company’s stock.

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.