- A. O. Smith Corp revised its full-year net sales forecast to between $3.80 billion and $3.90 billion, down from the previous estimate of $3.97 billion to $4.05 billion.
- The company predicts adjusted earnings per share (EPS) will range from $3.70 to $3.85, compared to its earlier projection of $3.95 to $4.10.
- Preliminary results for the first nine months indicate a free cash flow of $283 million.
- For the third quarter, preliminary EPS came in at 82 cents, missing the estimate of 96 cents.
- Preliminary net sales for the third quarter were $902.6 million.
- Sales in North America totaled $703 million, below the projected $728.6 million, and sales for the rest of the world were $210 million, under the estimated $238.6 million.
- A. O. Smith cited an unexpected decline in constant currency sales to third parties, with a 17% decline compared to last year.
- The company attributes weaker sales to a price increase-related pre-buy in the first half of the year and improved lead times impacting order demand.
- Kevin J. Wheeler, the CEO, noted strong and stable customer relationships and improved lead times, despite the challenges faced in the third quarter.
- The company had solid residential water heater backlogs entering the third quarter, which helped offset weaker orders in that period.
- Market consensus includes 4 buy ratings, 7 hold ratings, and 2 sell ratings for A. O. Smith Corp stock.
A look at Smith (A.O.) Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have provided an overall positive outlook for Smith (A.O.) based on their Smart Scores. With a strong score of 4 for both Growth and Resilience, the company is positioned well for long-term success. This indicates that Smith (A.O.) has solid potential for expansion and the ability to weather economic challenges. Additionally, the Momentum score of 4 suggests that the company is experiencing positive market trends.
While the Value score of 2 indicates that the company may not be undervalued compared to its peers, the Dividend score of 3 shows that investors can expect a moderate level of dividend payouts. Overall, with mostly high scores across key factors, Smith (A.O.) appears to be a promising investment option for those looking at the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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