Zacks Research Forecasts Stronger Earnings for A. O. Smith

A. O. Smith Co. (NYSE:AOS) – Research analysts at Zacks Research boosted their Q1 2025 earnings per share (EPS) estimates for shares of A. O. Smith in a report released on Wednesday, January 29th. Zacks Research analyst R. Department now forecasts that the industrial products company will earn $0.97 per share for the quarter, up from their previous estimate of $0.96. The consensus estimate for A. O. Smith’s current full-year earnings is $3.77 per share. Zacks Research also issued estimates for A. O. Smith’s FY2025 earnings at $3.95 EPS, Q1 2026 earnings at $1.05 EPS, Q4 2026 earnings at $1.11 EPS and FY2026 earnings at $4.37 EPS.

A. O. Smith (NYSE:AOS) last issued its quarterly earnings results on Thursday, January 30th. The industrial products company reported $0.85 EPS for the quarter, missing analysts’ consensus estimates of $0.90 by ($0.05). A. O. Smith had a net margin of 14.41% and a return on equity of 30.09%.

A number of other brokerages have also recently issued reports on AOS. UBS Group reduced their price objective on A. O. Smith from $80.00 to $74.00 and set a “neutral” rating on the stock in a research note on Friday. Stifel Nicolaus reduced their price target on A. O. Smith from $90.00 to $84.00 and set a “buy” rating on the stock in a research report on Friday. DA Davidson downgraded A. O. Smith from a “buy” rating to a “neutral” rating and set a $80.00 price objective for the company. in a research report on Wednesday, October 23rd. Oppenheimer dropped their price objective on A. O. Smith from $88.00 to $84.00 and set an “outperform” rating for the company in a research note on Friday. Finally, Citigroup decreased their target price on shares of A. O. Smith from $78.00 to $73.00 and set a “neutral” rating on the stock in a research note on Monday, January 13th. Five research analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $80.86.

A. O. Smith Price Performance

AOS stock opened at $67.27 on Friday. The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.02 and a current ratio of 1.67. The firm has a market cap of $9.75 billion, a P/E ratio of 17.70, a P/E/G ratio of 1.44 and a beta of 1.18. The firm’s fifty day moving average is $70.71 and its 200 day moving average is $77.39. A. O. Smith has a 52 week low of $65.53 and a 52 week high of $92.44.

Institutional Investors Weigh In On A. O. Smith

A number of large investors have recently modified their holdings of the stock. Public Sector Pension Investment Board boosted its position in A. O. Smith by 65.3% during the 2nd quarter. Public Sector Pension Investment Board now owns 4,649 shares of the industrial products company’s stock valued at $380,000 after acquiring an additional 1,836 shares in the last quarter. The Manufacturers Life Insurance Company lifted its stake in shares of A. O. Smith by 0.8% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 98,178 shares of the industrial products company’s stock valued at $8,029,000 after purchasing an additional 807 shares during the period. Northwestern Mutual Wealth Management Co. boosted its position in shares of A. O. Smith by 7.2% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,007 shares of the industrial products company’s stock valued at $164,000 after purchasing an additional 134 shares in the last quarter. Quarry LP grew its stake in A. O. Smith by 214.9% in the second quarter. Quarry LP now owns 359 shares of the industrial products company’s stock worth $29,000 after purchasing an additional 245 shares during the period. Finally, Truist Financial Corp grew its stake in A. O. Smith by 1.4% in the second quarter. Truist Financial Corp now owns 13,844 shares of the industrial products company’s stock worth $1,132,000 after purchasing an additional 193 shares during the period. Institutional investors own 76.10% of the company’s stock.

A. O. Smith Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, February 18th. Investors of record on Friday, January 31st will be issued a $0.34 dividend. This represents a $1.36 annualized dividend and a yield of 2.02%. The ex-dividend date is Friday, January 31st. A. O. Smith’s dividend payout ratio (DPR) is currently 35.79%.

About A. O. Smith

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.