Zacks Research Forecasts Weaker Earnings for A. O. Smith

A. O. Smith Corporation (NYSE:AOS) – Stock analysts at Zacks Research reduced their FY2025 EPS estimates for shares of A. O. Smith in a research note issued on Tuesday, November 18th. Zacks Research analyst Team now expects that the industrial products company will earn $3.80 per share for the year, down from their previous forecast of $3.81. 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 Q4 2025 earnings at $0.84 EPS, Q4 2026 earnings at $0.96 EPS, FY2026 earnings at $4.01 EPS, Q2 2027 earnings at $1.23 EPS, Q3 2027 earnings at $1.09 EPS and FY2027 earnings at $4.52 EPS.

A. O. Smith (NYSE:AOS) last announced its 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. A. O. Smith had a net margin of 13.85% and a return on equity of 29.34%. The company had revenue of $942.50 million during the quarter, compared to the consensus estimate of $946.33 million. During the same period in the previous year, the firm posted $0.82 earnings per share. The company’s revenue was up 4.4% on a year-over-year basis. A. O. Smith has set its FY 2025 guidance at 3.700-3.850 EPS.

Several other equities research analysts have also recently commented on AOS. Stifel Nicolaus set a $80.00 target price on A. O. Smith and gave the company a “buy” rating in a research note on Wednesday, October 29th. DA Davidson reiterated a “neutral” rating and issued a $75.00 price objective on shares of A. O. Smith in a research report on Thursday, November 13th. Oppenheimer boosted their price objective on A. O. Smith from $82.00 to $88.00 and gave the stock an “outperform” rating in a report on Monday, July 28th. Wall Street Zen raised shares of A. O. Smith from a “hold” rating to a “buy” rating in a research note on Saturday, October 18th. Finally, UBS Group reissued a “neutral” rating and set a $76.00 price target (up from $74.00) on shares of A. O. Smith in a research note on Monday, July 28th. Two analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $76.71.

A. O. Smith Stock Performance

AOS stock opened at $63.61 on Thursday. The company has a 50 day moving average price of $69.31 and a 200 day moving average price of $68.96. A. O. Smith has a fifty-two week low of $58.83 and a fifty-two week high of $77.31. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.54 and a quick ratio of 1.03. The stock has a market capitalization of $8.86 billion, a PE ratio of 17.15, a price-to-earnings-growth ratio of 1.43 and a beta of 1.30.

Institutional Investors Weigh In On A. O. Smith

Large investors have recently modified their holdings of the business. WealthPLAN Partners LLC grew its position in shares of A. O. Smith by 1.3% in the 3rd quarter. WealthPLAN Partners LLC now owns 12,080 shares of the industrial products company’s stock valued at $887,000 after purchasing an additional 158 shares during the period. EverSource Wealth Advisors LLC increased its position in shares of A. O. Smith by 17.3% during the third quarter. EverSource Wealth Advisors LLC now owns 1,130 shares of the industrial products company’s stock worth $83,000 after acquiring an additional 167 shares in the last quarter. True Wealth Design LLC raised its holdings in shares of A. O. Smith by 37.8% during the third quarter. True Wealth Design LLC now owns 613 shares of the industrial products company’s stock worth $45,000 after acquiring an additional 168 shares during the period. Legacy Capital Wealth Partners LLC raised its holdings in shares of A. O. Smith by 4.5% during the second quarter. Legacy Capital Wealth Partners LLC now owns 3,972 shares of the industrial products company’s stock worth $260,000 after acquiring an additional 171 shares during the period. Finally, Financial Advocates Investment Management lifted its position in A. O. Smith by 2.5% in the 2nd quarter. Financial Advocates Investment Management now owns 7,040 shares of the industrial products company’s stock valued at $462,000 after acquiring an additional 175 shares in the last quarter. 76.10% of the stock is currently owned by institutional investors.

A. O. Smith Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, November 17th. Shareholders of record on Friday, October 31st were issued a dividend of $0.36 per share. This is a boost from A. O. Smith’s previous quarterly dividend of $0.34. This represents a $1.44 annualized dividend and a yield of 2.3%. The ex-dividend date was Friday, October 31st. A. O. Smith’s dividend payout ratio is presently 38.81%.

A. O. Smith Company Profile

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.