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A.O. Smith (AOS) Expected to Beat Earnings Estimates: Can the Stock Move Higher?
AOSA. O. Smith(AOS) ZACKS·2025-01-23 16:07

Core Viewpoint - The market anticipates a year-over-year decline in A.O. Smith's earnings due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - A.O. Smith is expected to report quarterly earnings of 0.89pershare,reflectingan8.30.89 per share, reflecting an 8.3% decrease year-over-year, with revenues projected at 952.23 million, down 3.6% from the previous year [3]. - The consensus EPS estimate has been revised 0.26% lower in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for A.O. Smith is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.93% [10][11]. - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. Historical Performance - In the last reported quarter, A.O. Smith met the expected earnings of $0.82 per share, showing no surprise [12]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [13]. Conclusion - A.O. Smith is viewed as a compelling candidate for an earnings beat, but investors should consider other factors influencing stock performance beyond earnings results [16].