Zacks Research Has Negative View of A. O. Smith Q3 Earnings

A. O. Smith Corporation (NYSE:AOS) – Stock analysts at Zacks Research decreased their Q3 2025 EPS estimates for shares of A. O. Smith in a research report issued to clients and investors on Thursday, August 14th. Zacks Research analyst Team now expects that the industrial products company will post earnings of $0.87 per share for the quarter, down from their previous forecast of $0.89. The consensus estimate for A. O. Smith’s current full-year earnings is $3.76 per share. Zacks Research also issued estimates for A. O. Smith’s Q1 2026 earnings at $0.97 EPS, Q3 2026 earnings at $0.92 EPS and Q1 2027 earnings at $1.09 EPS.

Other equities research analysts have also recently issued research reports about the stock. Robert W. Baird upped their price target on shares of A. O. Smith from $76.00 to $82.00 and gave the stock a “neutral” rating in a research report on Friday, July 25th. Stifel Nicolaus upped their price target on shares of A. O. Smith from $78.00 to $81.00 and gave the stock a “buy” rating in a research report on Monday, July 21st. JPMorgan Chase & Co. assumed coverage on shares of A. O. Smith in a research report on Tuesday, June 24th. They issued a “neutral” rating and a $70.00 price target for the company. UBS Group reiterated a “neutral” rating and set a $76.00 price objective (up previously from $74.00) on shares of A. O. Smith in a research note on Monday, July 28th. Finally, Oppenheimer boosted their price objective on shares of A. O. Smith from $82.00 to $88.00 and gave the stock an “outperform” rating in a research note on Monday, July 28th. Five analysts have rated the stock with a hold rating and three have given a buy rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $77.43.

A. O. Smith Price Performance

Shares of AOS opened at $72.18 on Monday. The company has a 50 day moving average price of $68.35 and a 200-day moving average price of $66.81. A. O. Smith has a fifty-two week low of $58.83 and a fifty-two week high of $92.06. The stock has a market capitalization of $10.11 billion, a PE ratio of 20.11, a PEG ratio of 1.57 and a beta of 1.22. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.03 and a current ratio of 1.65.

A. O. Smith (NYSE:AOS) last announced its quarterly earnings results on Thursday, July 24th. The industrial products company reported $1.07 earnings per share for the quarter, topping the consensus estimate of $0.97 by $0.10. A. O. Smith had a net margin of 13.68% and a return on equity of 28.42%. The firm had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $997.89 million. During the same quarter in the prior year, the company earned $1.06 EPS. The company’s revenue was down 1.3% compared to the same quarter last year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. raised its holdings in shares of A. O. Smith by 2.0% in the first quarter. Vanguard Group Inc. now owns 14,404,259 shares of the industrial products company’s stock worth $941,462,000 after buying an additional 286,316 shares during the last quarter. Impax Asset Management Group plc raised its holdings in shares of A. O. Smith by 67.3% in the first quarter. Impax Asset Management Group plc now owns 5,188,561 shares of the industrial products company’s stock worth $339,124,000 after buying an additional 2,086,433 shares during the last quarter. Invesco Ltd. raised its holdings in shares of A. O. Smith by 6.5% in the first quarter. Invesco Ltd. now owns 5,011,496 shares of the industrial products company’s stock worth $327,551,000 after buying an additional 307,201 shares during the last quarter. First Trust Advisors LP raised its holdings in shares of A. O. Smith by 19.0% in the fourth quarter. First Trust Advisors LP now owns 2,618,191 shares of the industrial products company’s stock worth $178,587,000 after buying an additional 417,595 shares during the last quarter. Finally, ProShare Advisors LLC raised its holdings in shares of A. O. Smith by 3.3% in the second quarter. ProShare Advisors LLC now owns 2,500,230 shares of the industrial products company’s stock worth $163,940,000 after buying an additional 79,696 shares during the last quarter. Hedge funds and other institutional investors own 76.10% of the company’s stock.

Insider Activity at A. O. Smith

In other A. O. Smith news, Chairman Kevin J. Wheeler sold 22,200 shares of the firm’s stock in a transaction on Wednesday, July 30th. The shares were sold at an average price of $71.26, for a total value of $1,581,972.00. Following the completion of the transaction, the chairman owned 100,647 shares of the company’s stock, valued at approximately $7,172,105.22. This trade represents a 18.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 0.76% of the stock is currently owned by company insiders.

A. O. Smith Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 15th. Investors of record on Thursday, July 31st were paid a dividend of $0.34 per share. This represents a $1.36 annualized dividend and a dividend yield of 1.9%. The ex-dividend date was Thursday, July 31st. A. O. Smith’s payout ratio is 37.88%.

A. O. Smith Company Profile

A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products in North America, China, Europe, and India. The company offers water heaters for residences, restaurants, hotels, office buildings, laundries, car washes, and small businesses; boilers for hospitals, schools, hotels, and other large commercial buildings, as well as homes, apartments, and condominiums; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, and point-of-use carbon and reverse osmosis products for residences, restaurants, hotels, and offices.