A. O. Smith(AOS) ZACKS·2025-01-24 16:21Core Viewpoint - A. O. Smith Corporation (AOS) is expected to report a decline in both revenue and earnings for the fourth quarter of 2024, influenced by various market factors and recent acquisitions [1][2][4]. Financial Performance Expectations - The Zacks Consensus Estimate for AOS's revenues is 731 million, a slight decrease of 0.9% year over year, driven by strong demand for commercial boilers and water treatment products, but offset by weakness in the residential and commercial water heater markets [4] - The Rest of the World segment is projected to see revenues of $235 million, down 9.6% year over year, primarily due to weak consumer demand in China, although demand for water treatment products in India is expected to provide some support [6] Impact of Acquisitions - Recent acquisitions, including the Pureit business from Unilever and Impact Water Products, are expected to positively influence AOS's top line by enhancing its water treatment solutions and expanding its market presence [7] Cost and Expense Challenges - A. O. Smith has faced challenges from high costs and expenses, including labor shortages and increased material costs, despite some moderation in supply-chain constraints [8] Earnings Outlook - AOS has an Earnings ESP of +0.93%, indicating a potential earnings beat, with the Most Accurate Estimate at 90 cents per share, higher than the Zacks Consensus Estimate [10]