A.O. Smith’s Quarterly Earnings Preview: What You Need to Know

Company Overview - A.O. Smith Corporation (AOS) has a market cap of $9.5 billion and is a global manufacturer of residential and commercial water heating and water treatment solutions, serving customers in North America, India, China, and other international markets [1] Earnings Expectations - Analysts expect AOS to report non-GAAP earnings of $0.84 per share for the fourth quarter, which is a decrease of 1.2% from $0.85 per share reported in the same quarter last year [2] - For the current year, earnings are projected to rise by 1.6% to $3.79 per share from $3.73 per share reported in the previous year, with expectations of an 8.4% annual improvement to $4.11 per share in fiscal 2026 [3] Stock Performance - AOS stock has declined marginally over the past 52 weeks, underperforming the Industrial Select Sector SPDR Fund's 18.6% surge and the S&P 500 Index's 16.8% increase during the same period [4] - The company has lagged the broader market as its core growth engine has lost momentum, with organic revenue stalling over the past two years, raising concerns about future growth relying on acquisitions rather than underlying business strength [5] Analyst Ratings - The consensus opinion on AOS is reasonably bullish, with a "Moderate Buy" rating overall; among 13 analysts, there are four "Strong Buys," eight "Holds," and one "Strong Sell" [6] - The mean price target for AOS is $78.50, suggesting a 15.9% upside potential from current price levels [6]