Insights into A.O. Smith's Upcoming Earnings

A.O. Smith AOS is preparing to release its quarterly earnings on Tuesday, 2024-10-22. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect A.O. Smith to report an earnings per share (EPS) of $0.95.

Investors in A.O. Smith are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Historical Earnings Performance

The company's EPS missed by $0.00 in the last quarter, leading to a 0.36% increase in the share price on the following day.

Here's a look at A.O. Smith's past performance and the resulting price change:

Tracking A.O. Smith's Stock Performance

Shares of A.O. Smith were trading at $78.75 as of October 18. Over the last 52-week period, shares are up 18.16%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on A.O. Smith

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on A.O. Smith.

The consensus rating for A.O. Smith is Buy, derived from 2 analyst ratings. An average one-year price target of $94.0 implies a potential 19.37% upside.

Peer Ratings Comparison

The below comparison of the analyst ratings and average 1-year price targets of Fortune Brands, Advanced Drainage Systems and Allegion, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• For Fortune Brands, analysts project an Buy trajectory, with an average 1-year price target of $91.33, indicating a potential 15.97% upside.
• The prevailing sentiment among analysts is an Outperform trajectory for Advanced Drainage Systems, with an average 1-year price target of $188.25, implying a potential 139.05% upside.
• Analysts currently favor an Neutral trajectory for Allegion, with an average 1-year price target of $138.2, suggesting a potential 75.49% upside.

Snapshot: Peer Analysis

In the peer analysis summary, key metrics for Fortune Brands, Advanced Drainage Systems and Allegion are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

A.O. Smith ranks highest in Gross Profit and Revenue Growth among its peers. It is in the middle for Return on Equity.

All You Need to Know About A.O. Smith

A.O. Smith Corporation manufactures and markets comprehensive lines of residential and commercial gas, gas tankless, and electric water heaters. Supplementary products include water heating equipment, condensing and noncondensing boilers, and water system tanks. The company's two operating segments are by geographic region: North America (majority of total revenue) and the Rest of the World. A material portion of sales in North America derive from replacing existing products, and the company utilizes a wholesale distribution channel and multiple selling locations. The Rest of the World segment sells majorly in Asian countries and operates sales offices to expand distribution and market its product portfolio.

Breaking Down A.O. Smith's Financial Performance

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: A.O. Smith's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 6.61%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Net Margin: A.O. Smith's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 15.25%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): A.O. Smith's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 8.24%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): A.O. Smith's ROA excels beyond industry benchmarks, reaching 4.9%. This signifies efficient management of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.09, A.O. Smith adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for A.O. Smith visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.