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The Zacks Consensus Estimate for AOS’s second-quarter earnings has been revised 1.2% downward in the past 60 days. However, AOS has an impressive surprise history, with its earnings having outperformed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 12.6%.
Let’s see how things are shaping up for A.O. Smith this earnings season.
Key Factors and Estimates for Q2
Robust demand for boilers and water treatment products, supported by its strong retail and direct-to-consumer sales channel, and pricing actions, is expected to have benefited A.O. Smith’s North America segment in second-quarter 2022. The Zacks Consensus Estimate for the segment stands at $764 million, implying a 26.5% increase from the prior-year period’s reported figure.
AOS’s Rest of World segment’s second-quarter revenues are expected to have benefited from demand across all major product categories in China and a strong demand environment for its products in India.
However, raw material cost inflation, supply-chain disruptions and labor constraints are likely to have weighed on A.O. Smith’s performance in the second quarter. Given AOS’ international presence, a stronger U.S. dollar might have depressed its overseas business performance in the quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for A. O. Smith 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. But this is not the case here, as you will see below.
Zacks Rank: A. O. Smith currently carries a Zacks Rank #4 (Sell).
Highlights of Q1 Earnings
In the first quarter of 2022, A. O. Smith’s 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. AOS’s first-quarter net sales increased 27% year over year to $977.7 million. The top line surpassed the Zacks Consensus Estimate of $965 million.
Stocks to Consider
Here are some companies worth considering within the broader Industrial Products sector, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
MRC Global Inc. (MRC - Free Report) has an Earnings ESP of +30.27% and a Zacks Rank of 1. MRC is slated to release second-quarter 2022 financial numbers on Aug 8.
In the past 60 days, MRC’s earnings estimates have increased 13.6% for the second quarter of 2022. MRC Global’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 140.8%.
Crane Holdings (CR - Free Report) has an Earnings ESP of +6.98% and a Zacks Rank #2. CR is slated to release second-quarter 2022 financial numbers on Jul 25.
In the past 60 days, CR’s earnings estimates have increased 4.1% for the second quarter of 2022. Crane Holdings’ earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 22.2%.
Zebra Technologies (ZBRA - Free Report) has an Earnings ESP of +2.15% and a Zacks Rank #3. ZBRA is scheduled to release second-quarter 2022 earnings numbers on Aug 2.
In the past 60 days, ZBRA’s earnings estimates have been unchanged for the second quarter of 2022. Zebra Technologies’ earnings trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average being 8.8%.
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Will Cost Headwinds Dampen A.O. Smith's (AOS) Q2 Earnings?
A. O. Smith Corporation (AOS - Free Report) is scheduled to report second-quarter 2022 results on Jul 28, before market open.
The Zacks Consensus Estimate for AOS’s second-quarter earnings has been revised 1.2% downward in the past 60 days. However, AOS has an impressive surprise history, with its earnings having outperformed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 12.6%.
Let’s see how things are shaping up for A.O. Smith this earnings season.
Key Factors and Estimates for Q2
Robust demand for boilers and water treatment products, supported by its strong retail and direct-to-consumer sales channel, and pricing actions, is expected to have benefited A.O. Smith’s North America segment in second-quarter 2022. The Zacks Consensus Estimate for the segment stands at $764 million, implying a 26.5% increase from the prior-year period’s reported figure.
AOS’s Rest of World segment’s second-quarter revenues are expected to have benefited from demand across all major product categories in China and a strong demand environment for its products in India.
However, raw material cost inflation, supply-chain disruptions and labor constraints are likely to have weighed on A.O. Smith’s performance in the second quarter. Given AOS’ international presence, a stronger U.S. dollar might have depressed its overseas business performance in the quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for A. O. Smith 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. But this is not the case here, as you will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: A. O. Smith has an Earnings ESP of +0.21%.
A. O. Smith Corporation Price, Consensus and EPS Surprise
A. O. Smith Corporation price-consensus-eps-surprise-chart | A. O. Smith Corporation Quote
Zacks Rank: A. O. Smith currently carries a Zacks Rank #4 (Sell).
Highlights of Q1 Earnings
In the first quarter of 2022, A. O. Smith’s 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. AOS’s first-quarter net sales increased 27% year over year to $977.7 million. The top line surpassed the Zacks Consensus Estimate of $965 million.
Stocks to Consider
Here are some companies worth considering within the broader Industrial Products sector, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
MRC Global Inc. (MRC - Free Report) has an Earnings ESP of +30.27% and a Zacks Rank of 1. MRC is slated to release second-quarter 2022 financial numbers on Aug 8.
In the past 60 days, MRC’s earnings estimates have increased 13.6% for the second quarter of 2022. MRC Global’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 140.8%.
Crane Holdings (CR - Free Report) has an Earnings ESP of +6.98% and a Zacks Rank #2. CR is slated to release second-quarter 2022 financial numbers on Jul 25.
In the past 60 days, CR’s earnings estimates have increased 4.1% for the second quarter of 2022. Crane Holdings’ earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 22.2%.
Zebra Technologies (ZBRA - Free Report) has an Earnings ESP of +2.15% and a Zacks Rank #3. ZBRA is scheduled to release second-quarter 2022 earnings numbers on Aug 2.
In the past 60 days, ZBRA’s earnings estimates have been unchanged for the second quarter of 2022. Zebra Technologies’ earnings trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average being 8.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.