Zacks: Brokerages Expect A. O. Smith Corp (NYSE:AOS) to Post $0.60 EPS

Equities research analysts expect that A. O. Smith Corp (NYSE:AOS) will report $0.60 earnings per share (EPS) for the current fiscal quarter, Zacks Investment Research reports. Five analysts have issued estimates for A. O. Smith’s earnings, with estimates ranging from $0.59 to $0.61. A. O. Smith reported earnings per share of $0.74 during the same quarter last year, which suggests a negative year over year growth rate of 18.9%. The firm is scheduled to issue its next quarterly earnings results on Tuesday, February 4th.

According to Zacks, analysts expect that A. O. Smith will report full year earnings of $2.26 per share for the current year, with EPS estimates ranging from $2.25 to $2.28. For the next year, analysts anticipate that the firm will report earnings of $2.54 per share, with EPS estimates ranging from $2.33 to $2.60. Zacks Investment Research’s EPS averages are an average based on a survey of research analysts that that provide coverage for A. O. Smith.

A. O. Smith (NYSE:AOS) last issued its quarterly earnings results on Tuesday, October 29th. The industrial products company reported $0.53 EPS for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.53. A. O. Smith had a net margin of 13.26% and a return on equity of 23.66%. The business had revenue of $728.20 million during the quarter, compared to the consensus estimate of $752.61 million. During the same quarter in the prior year, the firm earned $0.61 EPS. The firm’s quarterly revenue was down 3.4% on a year-over-year basis.

A number of research analysts have recently weighed in on the company. TheStreet upgraded A. O. Smith from a “c+” rating to a “b-” rating in a report on Tuesday, September 10th. Northcoast Research reissued a “buy” rating on shares of A. O. Smith in a research note on Wednesday, October 2nd. Rosenblatt Securities assumed coverage on A. O. Smith in a research note on Thursday, November 7th. They issued a “neutral” rating and a $52.00 price objective for the company. ValuEngine upgraded A. O. Smith from a “sell” rating to a “hold” rating in a research report on Friday, November 1st. Finally, Goldman Sachs Group started coverage on A. O. Smith in a research note on Friday. They set a “sell” rating and a $43.00 target price on the stock. Two equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and four have given a buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus target price of $53.62.

NYSE:AOS traded down $1.41 during trading hours on Monday, hitting $45.38. 1,964,084 shares of the stock traded hands, compared to its average volume of 1,684,599. The firm has a market cap of $7.63 billion, a price-to-earnings ratio of 17.39, a PEG ratio of 2.31 and a beta of 1.49. The firm has a 50 day moving average price of $49.89 and a 200 day moving average price of $46.74. The company has a current ratio of 2.06, a quick ratio of 1.64 and a debt-to-equity ratio of 0.21. A. O. Smith has a fifty-two week low of $40.38 and a fifty-two week high of $56.66.

The business also recently declared a quarterly dividend, which was paid on Friday, November 15th. Stockholders of record on Thursday, October 31st were paid a $0.24 dividend. The ex-dividend date of this dividend was Wednesday, October 30th. This is an increase from A. O. Smith’s previous quarterly dividend of $0.22. This represents a $0.96 dividend on an annualized basis and a dividend yield of 2.12%. A. O. Smith’s dividend payout ratio is 36.78%.

In related news, Director Mark D. Smith sold 4,820 shares of A. O. Smith stock in a transaction on Friday, November 8th. The stock was sold at an average price of $51.94, for a total transaction of $250,350.80. Following the completion of the sale, the director now owns 109,113 shares of the company’s stock, valued at $5,667,329.22. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Chairman Ajita G. Rajendra sold 16,556 shares of the business’s stock in a transaction dated Tuesday, September 10th. The shares were sold at an average price of $49.47, for a total value of $819,025.32. Following the completion of the transaction, the chairman now owns 78,163 shares in the company, valued at approximately $3,866,723.61. The disclosure for this sale can be found here. 1.03% of the stock is currently owned by company insiders.

Several institutional investors and hedge funds have recently bought and sold shares of the company. FMR LLC increased its holdings in A. O. Smith by 51.9% in the first quarter. FMR LLC now owns 813,266 shares of the industrial products company’s stock worth $43,364,000 after buying an additional 277,862 shares during the last quarter. Advisor Partners LLC grew its position in A. O. Smith by 15.6% in the second quarter. Advisor Partners LLC now owns 5,061 shares of the industrial products company’s stock worth $239,000 after acquiring an additional 684 shares in the last quarter. Janney Montgomery Scott LLC increased its stake in shares of A. O. Smith by 25.2% during the 2nd quarter. Janney Montgomery Scott LLC now owns 81,640 shares of the industrial products company’s stock worth $3,850,000 after purchasing an additional 16,434 shares during the last quarter. Investec Asset Management LTD increased its stake in shares of A. O. Smith by 24.3% during the 2nd quarter. Investec Asset Management LTD now owns 648,507 shares of the industrial products company’s stock worth $21,083,000 after purchasing an additional 126,796 shares during the last quarter. Finally, First Trust Advisors LP raised its holdings in shares of A. O. Smith by 5.9% during the 2nd quarter. First Trust Advisors LP now owns 383,407 shares of the industrial products company’s stock valued at $18,081,000 after purchasing an additional 21,527 shares in the last quarter. 79.37% of the stock is owned by institutional investors.

About A. O. Smith

A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, tanks, and water treatment products in North America, China, Europe, and India. It operates through two segments, North America and Rest of World. The company offers water heaters for residences, restaurants, hotels and motels, office buildings, laundries, car washes, and small businesses; residential and commercial boilers for space heating applications in hospitals, schools, hotels, and other commercial buildings; and water treatment products, including on-the-go filtration bottles, point-of-use carbon and reverse osmosis products, point-of-entry water softeners, and whole-home water filtration products for residences, restaurants, hotels, and offices.

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Earnings History and Estimates for A. O. Smith (NYSE:AOS)

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