Water heating and treatment solutions company A.O. Smith (NYSE: AOS) will be reporting results tomorrow before market hours. Here’s what to look for.
A. O. Smith missed analysts’ revenue expectations by 4.7% last quarter, reporting revenues of $912.4 million, down 7.7% year on year. It was a disappointing quarter for the company, with 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 2.6% year on year to $953.7 million, a reversal from the 1.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.91 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 Q1 results, giving us a hint as to what we can expect. Lennox delivered year-on-year revenue growth of 2.4%, beating analysts’ expectations by 4.6%, and Zurn Elkay reported revenues up 4%, topping estimates by 1.4%. Lennox traded down 6.5% following the results while Zurn Elkay was up 4.9%.
Read our full analysis of Lennox’s results here and Zurn Elkay’s results here.
Investors in the building products segment have had fairly steady hands going into earnings, with share prices down 1.4% on average over the last month. A. O. Smith’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $74.59 (compared to the current share price of $64.99).
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