Water heating and treatment solutions company A.O. Smith (NYSE: AOS) will be reporting earnings this Thursday before market hours. Here’s what you need to know.
A. O. Smith missed analysts’ revenue expectations last quarter, reporting revenues of $912.5 million, flat year on year. It was a slower quarter for the company, with a miss of analysts’ revenue estimates and full-year revenue guidance slightly missing analysts’ expectations.
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, the market is expecting A. O. Smith’s revenue to grow 1.6% year on year, a reversal from the 1.5% decrease it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing in majority upward revisions over the last 30 days. A. O. Smith has missed Wall Street’s revenue estimates multiple 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. Zurn Elkay delivered year-on-year revenue growth of 11.4%, beating analysts’ expectations by 3.2%, and Simpson reported revenues up 9.1%, topping estimates by 6.4%. Zurn Elkay traded up 9.5% following the results while Simpson was also up 2.4%.
Read our full analysis of Zurn Elkay’s results here and Simpson’s results here.
There has been positive sentiment among investors in the building products segment, with share prices up 14.1% 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 $78.30 (compared to the current share price of $64.15).
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