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Water heating and treatment solutions company A.O. Smith (NYSE:AOS) will be announcing earnings results tomorrow before market open. Here’s what investors should know.
A. O. Smith missed analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $902.6 million, down 3.7% year on year. It was a slower quarter for the company, with a slight miss of analysts’ organic revenue estimates and full-year revenue guidance missing analysts’ expectations.
Is A. O. Smith a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting A. O. Smith’s revenue to decline 3.1% year on year to $957.1 million, a reversal from the 5.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.89 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. A. O. Smith has missed Wall Street’s revenue estimates five times over the last two years.
Looking at A. O. Smith’s peers in the building products segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Lennox delivered year-on-year revenue growth of 16.5%, beating analysts’ expectations by 8.9%, and Insteel reported revenues up 6.6%, topping estimates by 10.4%. Insteel traded up 8.7% following the results.
Read our full analysis of Lennox’s results here and Insteel’s results here.
There has been positive sentiment among investors in the building products segment, with share prices up 3.5% on average over the last month. A. O. Smith is up 2% during the same time and is heading into earnings with an average analyst price target of $80.99 (compared to the current share price of $69.60).
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