Zacks Research Decreases Earnings Estimates for A. O. Smith

A. O. Smith Corporation (NYSE:AOS) – Equities researchers at Zacks Research reduced their Q2 2026 earnings estimates for A. O. Smith in a research report issued 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 prior estimate 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 released its quarterly earnings data on Thursday, April 30th. The industrial products company reported $0.85 earnings per share for the quarter, missing analysts’ consensus estimates of $0.94 by ($0.09). A. O. Smith had a net margin of 13.84% and a return on equity of 28.42%. The firm had revenue of $945.60 million during the quarter, compared to analysts’ expectations of $974.06 million. During the same period in the previous year, the firm posted $0.95 EPS. The firm’s quarterly revenue was down 1.9% on a year-over-year basis. A. O. Smith has set its FY 2026 guidance at 3.600-3.900 EPS.

Other research analysts have also recently issued research reports about the stock. Wall Street Zen cut shares of A. O. Smith from a “buy” rating to a “hold” rating in a report on Saturday, February 14th. DA Davidson set a $67.00 target price on shares of A. O. Smith and gave the company a “neutral” rating in a research report on Monday, May 4th. Weiss Ratings lowered shares of A. O. Smith from a “hold (c)” rating to a “hold (c-)” rating in a research report on Wednesday, May 27th. Robert W. Baird set a $70.00 target price on shares of A. O. Smith in a research report on Friday, May 1st. Finally, JPMorgan Chase & Co. reiterated an “underweight” rating and issued a $60.00 target price (down from $65.00) on shares of A. O. Smith in a research report on Friday, May 15th. Two investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, A. O. Smith presently has a consensus rating of “Reduce” and an average target price of $69.89.

A. O. Smith Stock Up 0.3%

AOS opened at $57.37 on Tuesday. A. O. Smith has a fifty-two week low of $54.16 and a fifty-two week high of $81.86. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.00 and a current ratio of 1.56. The company has a fifty day moving average of $61.21 and a two-hundred day moving average of $67.32. The stock has a market capitalization of $7.91 billion, a price-to-earnings ratio of 15.26, a PEG ratio of 1.26 and a beta of 1.18.

Hedge Funds Weigh In On A. O. Smith

Institutional investors and hedge funds have recently bought and sold shares of the company. Creative Financial Designs Inc. ADV boosted its holdings in A. O. Smith by 3,481.8% in the 4th quarter. Creative Financial Designs Inc. ADV now owns 394 shares of the industrial products company’s stock valued at $26,000 after purchasing an additional 383 shares during the last quarter. Rothschild Investment LLC boosted its holdings in A. O. Smith by 3,125.0% in the 3rd quarter. Rothschild Investment LLC now owns 387 shares of the industrial products company’s stock valued at $28,000 after purchasing an additional 375 shares during the last quarter. Torren Management LLC acquired a new position in A. O. Smith in the 4th quarter valued at about $31,000. Eagle Bay Advisors LLC acquired a new position in A. O. Smith in the 4th quarter valued at about $32,000. Finally, Los Angeles Capital Management LLC acquired a new position in A. O. Smith in the 4th quarter valued at about $35,000. 76.10% of the stock is currently owned by institutional investors and hedge funds.

A. O. Smith Announces Dividend

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

About A. O. Smith

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.