What's Going On With Geyser Maker A.O.Smith Shares Today?

A.O. Smith Corp AOS reported fourth-quarter 2023 revenue growth of 6% Y/Y to $988.1 million, beating the consensus of $985.4 million.

Revenue growth on Y/Y basis benefited from higher water heater volumes. North American sales rose 7% Y/Y to $738.0 million. The rest of world sales were $260.2 million, increasing 4% Y/Y.

Gross profit rose to $369.8 million from $348.6 million a year ago. Adjusted EPS was $0.97, beating the consensus of $0.96.

As of December 31, 2023, the company’s cash and marketable securities balances totaled $363.4 million, and debt stood at $127.3 million.

The company bought back 4.4 million shares for $306.5 million in 2023. As of December 31, 2023, it had around 3.5 million additional shares remaining under authorization. 

In January 2024, the company’s board of directors increased the number of shares authorized for repurchase by an additional 2 million shares and expects to repurchase shares worth $300 million in 2024.

The company declared a regular quarterly cash dividend per share of $0.32, payable on February 15, to shareholders of record as of January 31, 2024.

FY24 Outlook: A.O. Smith expects sales of $3.97 billion – $4.05 billion, (consensus $3.99 billion) and adjusted EPS of $3.90-$4.15 (vs. consensus $4.05). 

Kevin J. Wheeler, chairman and chief executive officer, said, “In North America, we enter 2024 with optimism for continued end-market demand in water heating and a rebound in boiler and water treatment volumes after 2023 corrections in end-market inventories. In our Rest of the World segment, we see overall growth with stability in China as the economy continues to work through its challenges as well as continued mid-teens growth in India.” 

Price Action: AOS shares are trading lower by 4.09% at $78.00 on the last check Tuesday.