AO Smith Earnings: Here’s Why Investors are Buying Shares Now

AO Smith Corp. (NYSE:AOS) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3.22%.

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AO Smith Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 45.45% to $0.96 in the quarter versus EPS of $0.66 in the year-earlier quarter.

Revenue: Rose 8.75% to $509.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: AO Smith Corp. reported adjusted EPS income of $0.96 per share. By that measure, the company beat the mean analyst estimate of $0.77. It beat the average revenue estimate of $504.78 million.

Quoting Management: “Our business is off to a very strong start this year,” Ajita G. Rajendra, president and chief executive officer, observed. “Our U.S. residential and commercial water heater volumes benefitted from improved economic conditions, and our Lochinvar product line continued to perform very well.”

Key Stats (on next page)…

Revenue decreased 2.8% from $524.3 million in the previous quarter. EPS increased 5.49% from $0.91 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.86 and has not changed. For the current year, the average estimate has moved up from a profit of $3.42 to a profit of $3.43 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]