Zacks Research Has Weak Forecast for A. O. Smith Q1 Earnings

A. O. Smith Co. (NYSE:AOS) – Analysts at Zacks Research reduced their Q1 2025 EPS estimates for A. O. Smith in a research note issued to investors on Thursday, February 20th. Zacks Research analyst R. Department now anticipates that the industrial products company will post earnings per share of $0.88 for the quarter, down from their previous forecast of $0.97. The consensus estimate for A. O. Smith’s current full-year earnings is $3.77 per share. Zacks Research also issued estimates for A. O. Smith’s Q2 2025 earnings at $0.98 EPS, FY2025 earnings at $3.69 EPS, Q1 2026 earnings at $0.95 EPS, Q4 2026 earnings at $1.08 EPS and FY2026 earnings at $4.14 EPS.

A number of other analysts have also commented on the stock. UBS Group reduced their price target on shares of A. O. Smith from $80.00 to $74.00 and set a “neutral” rating for the company in a research note on Friday, January 31st. StockNews.com raised shares of A. O. Smith from a “hold” rating to a “buy” rating in a research report on Friday, January 31st. Stifel Nicolaus lowered their price target on A. O. Smith from $90.00 to $84.00 and set a “buy” rating on the stock in a report on Friday, January 31st. Oppenheimer cut their price objective on A. O. Smith from $88.00 to $84.00 and set an “outperform” rating for the company in a report on Friday, January 31st. Finally, Citigroup lowered their target price on A. O. Smith from $78.00 to $73.00 and set a “neutral” rating on the stock in a report on Monday, January 13th. Five investment analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. According to MarketBeat, A. O. Smith has an average rating of “Hold” and an average target price of $80.86.

A. O. Smith Price Performance

NYSE AOS opened at $66.23 on Monday. A. O. Smith has a one year low of $64.55 and a one year high of $92.44. The stock has a 50-day moving average of $68.33 and a 200 day moving average of $75.22. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.96 and a current ratio of 1.55. The company has a market capitalization of $9.53 billion, a price-to-earnings ratio of 18.24, a PEG ratio of 1.48 and a beta of 1.17.

A. O. Smith (NYSE:AOS) last posted its earnings results on Thursday, January 30th. The industrial products company reported $0.85 EPS for the quarter, missing analysts’ consensus estimates of $0.90 by ($0.05). A. O. Smith had a return on equity of 28.87% and a net margin of 13.98%.

Hedge Funds Weigh In On A. O. Smith

Hedge funds have recently made changes to their positions in the business. Norges Bank bought a new position in A. O. Smith in the 4th quarter worth approximately $96,180,000. Invesco Ltd. lifted its holdings in shares of A. O. Smith by 26.8% in the fourth quarter. Invesco Ltd. now owns 4,704,295 shares of the industrial products company’s stock worth $320,880,000 after buying an additional 995,043 shares in the last quarter. KBC Group NV boosted its position in shares of A. O. Smith by 40.1% during the fourth quarter. KBC Group NV now owns 1,648,825 shares of the industrial products company’s stock worth $112,467,000 after acquiring an additional 471,990 shares during the last quarter. Voloridge Investment Management LLC grew its stake in A. O. Smith by 242.8% during the fourth quarter. Voloridge Investment Management LLC now owns 627,282 shares of the industrial products company’s stock valued at $42,787,000 after acquiring an additional 444,307 shares in the last quarter. Finally, First Trust Advisors LP increased its holdings in A. O. Smith by 19.0% in the 4th quarter. First Trust Advisors LP now owns 2,618,191 shares of the industrial products company’s stock valued at $178,587,000 after acquiring an additional 417,595 shares during the last quarter. Institutional investors own 76.10% of the company’s stock.

Insider Activity

In other news, SVP Douglas Samuel Karge sold 419 shares of the firm’s stock in a transaction on Friday, February 7th. The shares were sold at an average price of $65.65, for a total transaction of $27,507.35. Following the sale, the senior vice president now directly owns 2,749 shares in the company, valued at $180,471.85. This trade represents a 13.23 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Robert J. Heideman sold 1,026 shares of the stock in a transaction on Friday, February 7th. The stock was sold at an average price of $65.65, for a total value of $67,356.90. Following the completion of the sale, the vice president now owns 8,889 shares of the company’s stock, valued at $583,562.85. The trade was a 10.35 % decrease in their position. The disclosure for this sale can be found here. Insiders own 2.70% of the company’s stock.

A. O. Smith Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, February 18th. Stockholders of record on Friday, January 31st were paid a $0.34 dividend. This represents a $1.36 annualized dividend and a dividend yield of 2.05%. The ex-dividend date was Friday, January 31st. A. O. Smith’s dividend payout ratio (DPR) is currently 37.47%.

A. O. Smith Company Profile

A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products in North America, China, Europe, and India. The company offers water heaters for residences, restaurants, hotels, office buildings, laundries, car washes, and small businesses; boilers for hospitals, schools, hotels, and other large commercial buildings, as well as homes, apartments, and condominiums; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, and point-of-use carbon and reverse osmosis products for residences, restaurants, hotels, and offices.