Research Analysts Offer Predictions for A. O. Smith Corp’s Q2 2019 Earnings (NYSE:AOS)
A. O. Smith Corp (NYSE:AOS) – Research analysts at Jefferies Financial Group issued their Q2 2019 EPS estimates for shares of A. O. Smith in a research note issued to investors on Wednesday, July 10th. Jefferies Financial Group analyst S. Boroditsky anticipates that the industrial products company will post earnings per share of $0.64 for the quarter. Jefferies Financial Group has a “Hold” rating on the stock. Jefferies Financial Group also issued estimates for A. O. Smith’s Q3 2019 earnings at $0.72 EPS, Q4 2019 earnings at $0.77 EPS, FY2019 earnings at $2.66 EPS, Q1 2020 earnings at $0.60 EPS, Q2 2020 earnings at $0.67 EPS, Q3 2020 earnings at $0.75 EPS, Q4 2020 earnings at $0.80 EPS, FY2020 earnings at $2.82 EPS, Q1 2021 earnings at $0.61 EPS and Q2 2021 earnings at $0.69 EPS.
Other equities analysts also recently issued reports about the stock. Zacks Investment Research downgraded shares of Hancock Jaffe Laboratories from a “buy” rating to a “hold” rating in a research note on Wednesday, June 26th. Boenning Scattergood restated a “hold” rating on shares of Peoples Bancorp in a research note on Wednesday, May 1st. Robert W. Baird increased their price objective on shares of Cerner from $67.00 to $71.00 and gave the stock an “outperform” rating in a research note on Wednesday, April 10th. Edward Jones downgraded shares of A. O. Smith from a “buy” rating to a “hold” rating in a research note on Monday, May 20th. Finally, DA Davidson reduced their price objective on shares of A. O. Smith to $58.00 and set a “buy” rating for the company in a research note on Friday, June 7th. Three equities research analysts have rated the stock with a sell rating, six have issued a hold rating and four have issued a buy rating to the stock. The stock has an average rating of “Hold” and a consensus target price of $56.11.
A. O. Smith (NYSE:AOS) last announced its earnings results on Tuesday, April 30th. The industrial products company reported $0.53 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.57 by ($0.04). A. O. Smith had a return on equity of 25.01% and a net margin of 13.81%. The company had revenue of $748.20 million during the quarter, compared to analyst estimates of $764.16 million. During the same period in the previous year, the company posted $0.60 earnings per share. A. O. Smith’s revenue for the quarter was down 5.1% on a year-over-year basis.
Hedge funds have recently modified their holdings of the company. Mid Atlantic Financial Management Inc. ADV raised its holdings in A. O. Smith by 2.6% in the 1st quarter. Mid Atlantic Financial Management Inc. ADV now owns 8,468 shares of the industrial products company’s stock valued at $452,000 after acquiring an additional 211 shares during the period. Signaturefd LLC raised its holdings in A. O. Smith by 67.6% in the 1st quarter. Signaturefd LLC now owns 538 shares of the industrial products company’s stock valued at $29,000 after acquiring an additional 217 shares during the period. ETF Managers Group LLC raised its holdings in A. O. Smith by 10.9% in the 1st quarter. ETF Managers Group LLC now owns 2,274 shares of the industrial products company’s stock valued at $121,000 after acquiring an additional 224 shares during the period. Piedmont Investment Advisors Inc. raised its holdings in A. O. Smith by 1.8% in the 1st quarter. Piedmont Investment Advisors Inc. now owns 12,633 shares of the industrial products company’s stock valued at $674,000 after acquiring an additional 225 shares during the period. Finally, Huntington National Bank raised its holdings in A. O. Smith by 82.2% in the 1st quarter. Huntington National Bank now owns 512 shares of the industrial products company’s stock valued at $27,000 after acquiring an additional 231 shares during the period. 75.08% of the stock is currently owned by institutional investors.
In other news, Director Ronald D. Brown sold 8,000 shares of the company’s stock in a transaction dated Thursday, May 2nd. The shares were sold at an average price of $52.45, for a total value of $419,600.00. Following the sale, the director now directly owns 35,896 shares of the company’s stock, valued at approximately $1,882,745.20. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Paul W. Jones sold 1,000 shares of the company’s stock in a transaction dated Thursday, May 9th. The shares were sold at an average price of $49.50, for a total transaction of $49,500.00. Following the completion of the sale, the director now directly owns 182,266 shares in the company, valued at $9,022,167. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 18,010 shares of company stock worth $944,468. 1.03% of the stock is owned by insiders.
The company also recently announced a quarterly dividend, which will be paid on Thursday, August 15th. Stockholders of record on Wednesday, July 31st will be issued a $0.22 dividend. The ex-dividend date is Tuesday, July 30th. This represents a $0.88 dividend on an annualized basis and a dividend yield of 1.95%. A. O. Smith’s payout ratio is 33.72%.
A. O. Smith declared that its board has authorized a stock buyback plan on Monday, June 3rd that authorizes the company to repurchase $300.00 million in outstanding shares. This repurchase authorization authorizes the industrial products company to repurchase up to 4.3% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s leadership believes its shares are undervalued.
About A. O. Smith
A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, tanks, and water treatment products in North America, China, Europe, and India. It operates through two segments, North America and Rest of World. The company offers water heaters for residences, restaurants, hotels and motels, office buildings, laundries, car washes, and small businesses; residential and commercial boilers for space heating applications in hospitals, schools, hotels, and other commercial buildings; and water treatment products, including on-the-go filtration bottles, point-of-use carbon and reverse osmosis products, point-of-entry water softeners, and whole-home water filtration products for residences, restaurants, hotels, and offices.
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