We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
A. O. Smith (AOS) Q3 Earnings & Revenues Surpass Estimates
Read MoreHide Full Article
A. O. Smith Corporation (AOS - Free Report) has reported better-than-expected third-quarter 2020 results, wherein both earnings and revenues beat estimates.
The company’s adjusted earnings were 66 cents per share, beating the Zacks Consensus Estimate of 53 cents. Also, the bottom line increased 24.5% from the year-ago figure of 53 cents.
Top-Line Details
The company’s third-quarter net sales increased 4.4% year over year to $760 million. The increase was driven by higher sales in North America. Notably, the top line beat the Zacks Consensus Estimate of $727 million.
A.O. Smith’s sales in North America (comprising the U.S. and Canada water heaters and boilers) moved up 5.7% year over year to $544 million. The segment’s results were driven by higher sales of residential water heaters and water treatment products, partially offset by lower commercial water heaters and boilers.
Segmental operating earnings were up about 9% to $133.1 million on a year-over-year basis. The increase was on account of higher sales volume of residential water heaters and water treatment products.
Quarterly sales in Rest of World (including China, India and Europe) grew 0.5% year over year to $221.4 million. The increase was primarily backed by higher consumer demand, partially offset by higher mix of mid-price products.
Operating earnings at the segment was $16.7 million compared with $4.1 million recorded in the year-ago quarter. Higher sales volume and lower operating costs were beneficial to the segment’s income.
A. O. Smith Corporation Price, Consensus and EPS Surprise
On Sep 30, 2020, A.O. Smith’s cash and cash equivalents totaled $377.9 million compared with $374 million as of Dec 31, 2019.
At the end of the reported quarter, long-term debt was $107.1 million compared with $277.2 million as of Dec 31, 2019.
In the first nine months of 2020, cash provided by the operating activities totaled $330.4 million compared with $280 million in the year-ago period.
Share Repurchases
In mid-March, the company suspended its share repurchase activity, owing to the uncertain business environment created by the coronavirus pandemic. Therefore, it refrained from buying back any shares in the third quarter of 2020.
Guidance
The company updated earnings guidance for 2020. It expects adjusted earnings of $1.95-1.98 compared with $1.72-1.86 per share projected earlier. The mid-point reflects a year-over-year decline of 11.5%.
Zacks Rank & Other Stocks to Consider
The company currently carries a Zacks Rank #2 (Buy).
Kaman delivered a positive earnings surprise of 30.42%, on average, in the trailing four quarters.
Dover delivered a positive earnings surprise of 18.10%, on average, in the trailing four quarters.
IDEX delivered a positive earnings surprise of 6.80%, on average, in the trailing four quarters.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
A. O. Smith (AOS) Q3 Earnings & Revenues Surpass Estimates
A. O. Smith Corporation (AOS - Free Report) has reported better-than-expected third-quarter 2020 results, wherein both earnings and revenues beat estimates.
The company’s adjusted earnings were 66 cents per share, beating the Zacks Consensus Estimate of 53 cents. Also, the bottom line increased 24.5% from the year-ago figure of 53 cents.
Top-Line Details
The company’s third-quarter net sales increased 4.4% year over year to $760 million. The increase was driven by higher sales in North America. Notably, the top line beat the Zacks Consensus Estimate of $727 million.
A.O. Smith’s sales in North America (comprising the U.S. and Canada water heaters and boilers) moved up 5.7% year over year to $544 million. The segment’s results were driven by higher sales of residential water heaters and water treatment products, partially offset by lower commercial water heaters and boilers.
Segmental operating earnings were up about 9% to $133.1 million on a year-over-year basis. The increase was on account of higher sales volume of residential water heaters and water treatment products.
Quarterly sales in Rest of World (including China, India and Europe) grew 0.5% year over year to $221.4 million. The increase was primarily backed by higher consumer demand, partially offset by higher mix of mid-price products.
Operating earnings at the segment was $16.7 million compared with $4.1 million recorded in the year-ago quarter. Higher sales volume and lower operating costs were beneficial to the segment’s income.
A. O. Smith Corporation Price, Consensus and EPS Surprise
A. O. Smith Corporation price-consensus-eps-surprise-chart | A. O. Smith Corporation Quote
Liquidity & Cash Flow
On Sep 30, 2020, A.O. Smith’s cash and cash equivalents totaled $377.9 million compared with $374 million as of Dec 31, 2019.
At the end of the reported quarter, long-term debt was $107.1 million compared with $277.2 million as of Dec 31, 2019.
In the first nine months of 2020, cash provided by the operating activities totaled $330.4 million compared with $280 million in the year-ago period.
Share Repurchases
In mid-March, the company suspended its share repurchase activity, owing to the uncertain business environment created by the coronavirus pandemic. Therefore, it refrained from buying back any shares in the third quarter of 2020.
Guidance
The company updated earnings guidance for 2020. It expects adjusted earnings of $1.95-1.98 compared with $1.72-1.86 per share projected earlier. The mid-point reflects a year-over-year decline of 11.5%.
Zacks Rank & Other Stocks to Consider
The company currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks are Kaman Corporation , Dover Corporation (DOV - Free Report) and IDEX Corporation (IEX - Free Report) . All these companies carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kaman delivered a positive earnings surprise of 30.42%, on average, in the trailing four quarters.
Dover delivered a positive earnings surprise of 18.10%, on average, in the trailing four quarters.
IDEX delivered a positive earnings surprise of 6.80%, on average, in the trailing four quarters.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>