Water heating and treatment solutions company A.O. Smith (NYSE: AOS) will be reporting results this Tuesday before the bell. Here’s what you need to know.
A. O. Smith beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $1.01 billion, down 1.3% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ organic revenue estimates.
Is A. O. Smith a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting A. O. Smith’s revenue to grow 4.9% year on year to $947.1 million, a reversal from the 3.7% decrease 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 three times over the last two years.
Looking at A. O. Smith’s peers in the building products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Lennox’s revenues decreased 4.8% year on year, missing analysts’ expectations by 4.3%, and Apogee reported revenues up 4.6%, topping estimates by 2.1%. Lennox traded down 9.9% following the results while Apogee was also down 4.5%.
Read our full analysis of Lennox’s results here and Apogee’s results here.
There has been positive sentiment among investors in the building products segment, with share prices up 3.7% on average over the last month. A. O. Smith is down 5.3% during the same time and is heading into earnings with an average analyst price target of $80.09 (compared to the current share price of $68.90).
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