Zacks Research Lowers Earnings Estimates for A. O. Smith

A. O. Smith Corporation (NYSE:AOS) – Zacks Research reduced their Q2 2026 earnings estimates for shares of A. O. Smith in a research report issued to clients and investors on Monday, June 8th. Zacks Research analyst Team now expects that the industrial products company will post earnings of $1.00 per share for the quarter, down from their previous forecast of $1.01. Zacks Research has a “Strong Sell” rating on the stock. The consensus estimate for A. O. Smith’s current full-year earnings is $3.78 per share. Zacks Research also issued estimates for A. O. Smith’s Q4 2026 earnings at $0.95 EPS, FY2026 earnings at $3.76 EPS, Q1 2027 earnings at $0.97 EPS, Q2 2027 earnings at $1.08 EPS and FY2028 earnings at $4.60 EPS.

A. O. Smith (NYSE:AOS) last issued its quarterly earnings data on Thursday, April 30th. The industrial products company reported $0.85 EPS for the quarter, missing the consensus estimate of $0.94 by ($0.09). A. O. Smith had a return on equity of 28.42% and a net margin of 13.84%.The company had revenue of $945.60 million during the quarter, compared to analyst estimates of $974.06 million. During the same quarter in the prior year, the company posted $0.95 earnings per share. The business’s revenue was down 1.9% compared to the same quarter last year. A. O. Smith has set its FY 2026 guidance at 3.600-3.900 EPS.

Several other equities analysts have also commented on AOS. Oppenheimer restated an “outperform” rating and issued a $80.00 price objective on shares of A. O. Smith in a report on Friday, May 1st. Citigroup decreased their price objective on shares of A. O. Smith from $74.00 to $65.00 and set a “neutral” rating on the stock in a report on Monday, May 4th. Stifel Nicolaus set a $75.00 price objective on shares of A. O. Smith in a report on Friday, May 1st. JPMorgan Chase & Co. restated an “underweight” rating and issued a $60.00 price objective (down from $65.00) on shares of A. O. Smith in a report on Friday, May 15th. Finally, The Goldman Sachs Group decreased their price objective on shares of A. O. Smith from $69.00 to $61.00 and set a “sell” rating on the stock in a report on Monday, April 13th. Two equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, A. O. Smith presently has an average rating of “Reduce” and a consensus price target of $69.89.

A. O. Smith Stock Performance

Shares of AOS stock opened at $57.37 on Tuesday. The firm’s 50 day moving average price is $61.21 and its 200-day moving average price is $67.32. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.00 and a current ratio of 1.56. A. O. Smith has a one year low of $54.16 and a one year high of $81.86. The firm has a market cap of $7.91 billion, a P/E ratio of 15.26, a P/E/G ratio of 1.26 and a beta of 1.18.

Institutional Investors Weigh In On A. O. Smith

Several large investors have recently added to or reduced their stakes in AOS. Norges Bank purchased a new stake in A. O. Smith during the 4th quarter worth approximately $97,101,000. Madison Asset Management LLC purchased a new stake in A. O. Smith during the 4th quarter worth approximately $80,885,000. American Century Companies Inc. increased its stake in A. O. Smith by 54.2% during the 3rd quarter. American Century Companies Inc. now owns 3,208,831 shares of the industrial products company’s stock worth $235,560,000 after buying an additional 1,128,543 shares during the period. Natixis Advisors LLC increased its stake in A. O. Smith by 220.4% during the 4th quarter. Natixis Advisors LLC now owns 1,022,299 shares of the industrial products company’s stock worth $68,371,000 after buying an additional 703,186 shares during the period. Finally, Vanguard Group Inc. increased its stake in A. O. Smith by 4.7% during the 4th quarter. Vanguard Group Inc. now owns 15,096,018 shares of the industrial products company’s stock worth $1,009,622,000 after buying an additional 683,176 shares during the period. 76.10% of the stock is owned by hedge funds and other institutional investors.

A. O. Smith Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Thursday, April 30th were paid a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a yield of 2.5%. The ex-dividend date of this dividend was Thursday, April 30th. A. O. Smith’s dividend payout ratio is presently 38.30%.

A. O. Smith Company Profile

A. O. Smith Corporation, based in Milwaukee, Wisconsin, is a leading manufacturer of water heating and water treatment products for residential and commercial applications. Since its founding in 1874, the company has built a reputation for producing reliable, energy-efficient water heaters, boilers and pressure vessels. Its product portfolio encompasses gas, electric, condensing and tankless water heaters, as well as specialty boilers designed to meet a variety of building and industrial needs.

The company operates through two primary segments: North America and Asia.