- A. O. Smith Corp has revised its full-year earnings per share (EPS) forecast to $3.70 – $3.85, down from the previous $3.95 – $4.10.
- The company maintains its net sales forecast between $3.80 billion and $3.90 billion, with an estimate of $3.88 billion.
- Adjusted EPS is projected at $3.70 – $3.85, aligning closely with an estimate of $3.84.
- Capital expenditure for the first nine months of the year totaled $77.4 million.
- Free cash flow for the nine-month period amounted to $282.5 million.
- For the third quarter, EPS was 82 cents compared to 90 cents year over year, meeting an estimate of 82 cents.
- Third quarter net sales were $902.6 million, a 3.7% decrease year over year, aligning closely with an estimate of $902.4 million.
- North America sales reached $703.3 million, a slight decline of 0.9% year over year, slightly under the estimate of $715.2 million.
- Sales from the rest of the world were $210.3 million, showing a decrease of 9.9% year over year, below the estimate of $221.4 million.
- Adjusted EPS for the third quarter stood at 82 cents, matching the estimate.
- The company reaffirms its revised 2024 EPS outlook of $3.70 to $3.85 due to expected challenges in consumer demand in China and cautious sentiment regarding North America’s water heater market demand.
- Despite challenges in China and North America, A. O. Smith saw strong performance in commercial boilers and North America water treatment with double-digit sales growth.
- The current analyst recommendations include 4 buys, 7 holds, and 2 sells.
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A look at Smith (A.O.) Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
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
Based on Smartkarma Smart Scores, A.O. Smith Corporation shows a promising long-term outlook. With a Growth score of 4 and a Resilience score of 4, the company demonstrates strong potential for expansion and the ability to withstand challenges. Additionally, A.O. Smith received a Value score of 2, suggesting that there may be some room for improvement in this area. The Dividend and Momentum scores both stand at 3, indicating moderate performance in these aspects. Overall, A.O. Smith seems well-positioned for continued growth and stability in the market.
A.O. Smith Corporation, known for manufacturing residential and commercial water heating equipment and water treatment products, has a global distribution network. The company’s solid Growth and Resilience scores as per Smartkarma Smart Scores reflect its capacity for development and ability to endure market fluctuations. While its Value score indicates potential for enhancement, the Dividend and Momentum scores suggest consistent performance. A.O. Smith’s robust presence in the market bodes well for its future prospects and continued success in the industry.
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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