- A. O. Smith Corp has revised its full-year adjusted EPS forecast to $3.70 to $3.90, previously $3.60 to $3.90, with an estimate of $3.78.
- Second quarter earnings per share (EPS) came in at $1.07, slightly up from $1.06 the previous year.
- Second quarter net sales were reported at $1.01 billion, a decline of 1.3% year-over-year, slightly surpassing the estimate of $1 billion.
- In North America, sales reached $779.0 million, a 1.5% year-over-year decrease, slightly above the $777.3 million estimate.
- Sales in the rest of the world totaled $240.1 million, down 1.9% year-over-year, but exceeded the $237.2 million estimate.
- The company has raised its full year sales outlook and the mid-point of its full-year EPS guidance.
- CEO Steve Shafer noted efforts to mitigate the impact of tariffs and price hikes by working closely with customers.
- Despite ongoing economic challenges in China, sales in India grew 19% in local currency, with the recent acquisition, Pureit, contributing $16 million in sales.
- Shafer expressed confidence in managing tariffs and improving market share due to production initiatives and restructuring actions.
- Analyst recommendations include 7 buys, 8 holds, and 1 sell.
Smith (A.O.) on Smartkarma
Analyst coverage of Smith (A.O.) on Smartkarma has been insightful and positive, with reports from Baptista Research shedding light on key aspects of the company’s performance. In the report titled “A.O. Smith: An Insight Into Its Cost Management & Efficiency Initiatives & Other Major Drivers!” by Baptista Research, the first quarter of 2025 financial results were analyzed against the backdrop of strategic initiatives in a challenging global environment.
Furthermore, Baptista Research‘s report “A. O. Smith – Initiation Of Coverage – Why Are They Ditching Retail And Focusing On D2C?” provided a detailed look into A.O. Smith Corporation’s recent earnings report. Highlighting both positive developments and areas of concern for investors, the report commended the company’s resilience amid economic challenges, particularly noting the sales growth in North America driven by boiler and water treatment segments.
A look at Smith (A.O.) Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
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
Looking ahead, the long-term outlook for A.O. Smith Corporation seems positive based on the Smartkarma Smart Scores analysis. With a solid overall score, the company is rated positively in terms of momentum, indicating a strong performance trend. Additionally, A.O. Smith scores well in terms of dividend, growth, and resilience, reflecting a balanced approach to generating returns and navigating market challenges. While the value score is not the highest, the company’s overall outlook appears promising.
A.O. Smith Corporation, known for manufacturing water heating equipment and water treatment products for residential and commercial use, distributes its products globally. The company’s Smart Scores suggest that A.O. Smith has a good foundation across key factors, positioning it for potential growth and stability in the long run. With a balanced performance across various metrics, A.O. Smith seems well-positioned to capture opportunities and weather market fluctuations in the future.
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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