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's (AOS) Q1 Earnings & Revenues Top Estimates
Read MoreHide Full Article
A. O. Smith Corporation (AOS - Free Report) has reported better-than-expected first-quarter 2022 results, wherein adjusted earnings of 77 cents per share beat the Zacks Consensus Estimate of 75 cents. The bottom line also increased 30.5% from the year-ago figure of 59 cents.
Top-Line Details
The company’s first-quarter net sales increased 27% year over year to $977.7 million. The increase was driven by higher sales in North America and China, supported by its pricing actions. The top line surpassed the Zacks Consensus Estimate of $965 million.
A. O. Smith’s quarterly sales in North America (comprising the United States and Canada water heaters and boilers) moved up 32% year over year to $730.1 million. The segment’s results were primarily driven by higher sales of boilers and water treatment products and the company’s pricing actions.
Segmental operating earnings were up 16.4% to $151.8 million on a year-over-year basis. The jump was on account of inflation-related price increases, partially offset by a rise in material and logistics costs.
Quarterly sales in the Rest of the World (including China, India and Europe) grew 15.2% year over year to $256 million. The increase was primarily backed by a positive mix in water treatment and water heater products in China and solid demand for commercial water treatment products and replacement filters.
The segment’s operating earnings were $24.8 million, reflecting a 110.2% increase year over year. A favorable product mix, higher volumes and lower advertising and selling expenses benefited the segment’s income.
A. O. Smith Corporation Price, Consensus and EPS Surprise
In the quarter, A.O. Smith’s cost of sales was $636.1 million, up 32.4% on a year-over-year basis. Selling, general & administrative expenses were $179.8 million, up 8%.
Gross profit increased 18.4% year over year to $341.6 million with a margin of 34.9%, down 260 basis points. Interest expenses increased 50% to $1.5 million.
Liquidity & Cash Flow
On Mar 31, 2022, A.O. Smith’s cash and cash equivalents totaled $405.8 million compared with $443.3 million in the previous quarter.
At the end of the reported quarter, long-term debt was $288.6 million, up 52% from $189.9 million sequentially.
In the first three months of 2022, cash provided by the operating activities totaled $16.5 million compared with $104.4 million in the year-ago period.
Share Repurchases
In the first three months of 2022, the company repurchased shares worth $107.9 million compared with $67 million in the year-ago period. It paid dividends worth $44.2 million compared with $42.2 million a year ago.
Guidance
The company provided revenue and earnings guidance for 2022. It anticipates revenues to lie in the range of $4,030-$4,105 million.
It currently expects adjusted earnings of $3.35-$3.55.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
AZZ’s earnings estimates increased 12.6% for fiscal 2022 (ending February 2022) in the past 60 days. Its shares have gained 1.5% in the past three months.
Alcoa Corporation (AA - Free Report) presently sports a Zacks Rank #1. Its earnings surprise in the last four quarters was 11.5%, on average.
In the past 60 days, AA’s earnings estimates have increased 72.1% for 2022. The stock has rallied 21.9% in the past three months.
Ferguson plc (FERG - Free Report) presently carries a Zacks Rank of 2 (Buy). FERG delivered a trailing four-quarter earnings surprise of 14.2%, on average.
Earnings estimates of Ferguson have increased 7% for fiscal 2022 (ending July 2022) in the past 60 days. FERG’s shares have declined 14.2% in the past three months.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
A. O. Smith's (AOS) Q1 Earnings & Revenues Top Estimates
A. O. Smith Corporation (AOS - Free Report) has reported better-than-expected first-quarter 2022 results, wherein adjusted earnings of 77 cents per share beat the Zacks Consensus Estimate of 75 cents. The bottom line also increased 30.5% from the year-ago figure of 59 cents.
Top-Line Details
The company’s first-quarter net sales increased 27% year over year to $977.7 million. The increase was driven by higher sales in North America and China, supported by its pricing actions. The top line surpassed the Zacks Consensus Estimate of $965 million.
A. O. Smith’s quarterly sales in North America (comprising the United States and Canada water heaters and boilers) moved up 32% year over year to $730.1 million. The segment’s results were primarily driven by higher sales of boilers and water treatment products and the company’s pricing actions.
Segmental operating earnings were up 16.4% to $151.8 million on a year-over-year basis. The jump was on account of inflation-related price increases, partially offset by a rise in material and logistics costs.
Quarterly sales in the Rest of the World (including China, India and Europe) grew 15.2% year over year to $256 million. The increase was primarily backed by a positive mix in water treatment and water heater products in China and solid demand for commercial water treatment products and replacement filters.
The segment’s operating earnings were $24.8 million, reflecting a 110.2% increase year over year. A favorable product mix, higher volumes and lower advertising and selling expenses benefited 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
Margin Details
In the quarter, A.O. Smith’s cost of sales was $636.1 million, up 32.4% on a year-over-year basis. Selling, general & administrative expenses were $179.8 million, up 8%.
Gross profit increased 18.4% year over year to $341.6 million with a margin of 34.9%, down 260 basis points. Interest expenses increased 50% to $1.5 million.
Liquidity & Cash Flow
On Mar 31, 2022, A.O. Smith’s cash and cash equivalents totaled $405.8 million compared with $443.3 million in the previous quarter.
At the end of the reported quarter, long-term debt was $288.6 million, up 52% from $189.9 million sequentially.
In the first three months of 2022, cash provided by the operating activities totaled $16.5 million compared with $104.4 million in the year-ago period.
Share Repurchases
In the first three months of 2022, the company repurchased shares worth $107.9 million compared with $67 million in the year-ago period. It paid dividends worth $44.2 million compared with $42.2 million a year ago.
Guidance
The company provided revenue and earnings guidance for 2022. It anticipates revenues to lie in the range of $4,030-$4,105 million.
It currently expects adjusted earnings of $3.35-$3.55.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies are discussed below.
AZZ Inc. (AZZ - Free Report) presently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Its earnings surprise for the last four quarters was 22.25%, on average.
AZZ’s earnings estimates increased 12.6% for fiscal 2022 (ending February 2022) in the past 60 days. Its shares have gained 1.5% in the past three months.
Alcoa Corporation (AA - Free Report) presently sports a Zacks Rank #1. Its earnings surprise in the last four quarters was 11.5%, on average.
In the past 60 days, AA’s earnings estimates have increased 72.1% for 2022. The stock has rallied 21.9% in the past three months.
Ferguson plc (FERG - Free Report) presently carries a Zacks Rank of 2 (Buy). FERG delivered a trailing four-quarter earnings surprise of 14.2%, on average.
Earnings estimates of Ferguson have increased 7% for fiscal 2022 (ending July 2022) in the past 60 days. FERG’s shares have declined 14.2% in the past three months.