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

A. O. Smith Corporation (NYSE:AOS) – 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) 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.