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Is a Beat in Store for A. O. Smith (AOS) in Q2 Earnings?
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A. O. Smith Corporation (AOS - Free Report) is likely to witness top and bottom-line growth when it reports second-quarter 2024 results on Jul 23, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $990 million, which indicates growth of 3% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pinned at $1.06 per share, which has remained steady in the past 60 days. The estimate indicates a jump of 5% from the figure reported in the year-ago quarter. The company’s bottom line surpassed the Zacks Consensus Estimate by a penny in the last reported quarter. It has a trailing four-quarter earnings surprise of 6.7%, on average.
Let’s see how things have shaped up for A.O. Smith this earnings season.
Factors to Note
A. O. Smith’s North America segment is expected to have benefited from strength on the commercial side and a favorable mix shift toward high-efficiency water heaters in the second quarter. Our estimate for the segment’s revenues is pegged at $749.7 million, indicating a year-over-year increase of 3.8%.
Higher volumes of tankless water heaters and kitchen appliance products are likely to have boosted the performance of the Rest of the World segment. We expect revenues from the segment to increase approximately 1% year over year to $246.3 million.
Acquisitions made by A. O. Smith are likely to have impacted its top line positively. In June 2022, it acquired Atlantic Filter, which boosted its position in the water treatment industry and strengthened its customer base in Florida and the adjacent regions. Also, the acquisition of Canada-based Giant Factories, in October 2021, expanded the company’s commercial water heater offerings.
The second-quarter results are also expected to reflect the benefits of improving supply chains and higher shipments. We expect the company’s revenues to be $986.9 million, indicating an increase of 2.7% year over year. Our estimate for earnings is pegged at $1.05 per share, indicating a 3.9% rise from the year-ago reported number.
However, over time, A. O. Smith’s performance has been negatively impacted by high costs and expenses. An increase in raw material cost is likely to have been a spoilsport. We expect the company’s cost of sales to escalate 5% year over year to $605 million.
Our proven model predicts an earnings beat for AOS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: A. O. Smith has an Earnings ESP of +0.78% as the Most Accurate Estimate is pegged at $1.07 per share, which is higher than the Zacks Consensus Estimate of $1.06. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: A. O. Smith carries a Zacks Rank of 3.
Other Stocks to Consider
Here are some other companies within the broader Industrial Products sector, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
The company is scheduled to release second-quarter results on Aug 6. Atkore’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 15.4%.
Crane Company (CR - Free Report) has an Earnings ESP of +0.96% and a Zacks Rank of 2. The company is slated to release second-quarter results on Jul 29.
Crane Company’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 15.2%.
Packaging Corporation of America (PKG - Free Report) has an Earnings ESP of +0.66% and a Zacks Rank of 2, at present. It is slated to release second-quarter results on Jul 23.
Packaging Corporation’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 12.3%.
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Is a Beat in Store for A. O. Smith (AOS) in Q2 Earnings?
A. O. Smith Corporation (AOS - Free Report) is likely to witness top and bottom-line growth when it reports second-quarter 2024 results on Jul 23, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $990 million, which indicates growth of 3% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pinned at $1.06 per share, which has remained steady in the past 60 days. The estimate indicates a jump of 5% from the figure reported in the year-ago quarter. The company’s bottom line surpassed the Zacks Consensus Estimate by a penny in the last reported quarter. It has a trailing four-quarter earnings surprise of 6.7%, on average.
Let’s see how things have shaped up for A.O. Smith this earnings season.
Factors to Note
A. O. Smith’s North America segment is expected to have benefited from strength on the commercial side and a favorable mix shift toward high-efficiency water heaters in the second quarter. Our estimate for the segment’s revenues is pegged at $749.7 million, indicating a year-over-year increase of 3.8%.
Higher volumes of tankless water heaters and kitchen appliance products are likely to have boosted the performance of the Rest of the World segment. We expect revenues from the segment to increase approximately 1% year over year to $246.3 million.
Acquisitions made by A. O. Smith are likely to have impacted its top line positively. In June 2022, it acquired Atlantic Filter, which boosted its position in the water treatment industry and strengthened its customer base in Florida and the adjacent regions. Also, the acquisition of Canada-based Giant Factories, in October 2021, expanded the company’s commercial water heater offerings.
The second-quarter results are also expected to reflect the benefits of improving supply chains and higher shipments. We expect the company’s revenues to be $986.9 million, indicating an increase of 2.7% year over year. Our estimate for earnings is pegged at $1.05 per share, indicating a 3.9% rise from the year-ago reported number.
However, over time, A. O. Smith’s performance has been negatively impacted by high costs and expenses. An increase in raw material cost is likely to have been a spoilsport. We expect the company’s cost of sales to escalate 5% year over year to $605 million.
A. O. Smith Corporation Price and EPS Surprise
A. O. Smith Corporation price-eps-surprise | A. O. Smith Corporation Quote
Earnings Whispers
Our proven model predicts an earnings beat for AOS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: A. O. Smith has an Earnings ESP of +0.78% as the Most Accurate Estimate is pegged at $1.07 per share, which is higher than the Zacks Consensus Estimate of $1.06. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: A. O. Smith carries a Zacks Rank of 3.
Other Stocks to Consider
Here are some other companies within the broader Industrial Products sector, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
Atkore Inc. (ATKR - Free Report) has an Earnings ESP of + 0.62% and a Zacks Rank of 3, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to release second-quarter results on Aug 6. Atkore’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 15.4%.
Crane Company (CR - Free Report) has an Earnings ESP of +0.96% and a Zacks Rank of 2. The company is slated to release second-quarter results on Jul 29.
Crane Company’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 15.2%.
Packaging Corporation of America (PKG - Free Report) has an Earnings ESP of +0.66% and a Zacks Rank of 2, at present. It is slated to release second-quarter results on Jul 23.
Packaging Corporation’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 12.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.