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AAON's Three-For-Two Stock Split to Attract More Investors
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AAON, Inc.’s (AAON - Free Report) board of directors declared a three-for-two stock split of its common stock in the form of a stock dividend. Each stockholder of record on Jul 28 is entitled to an additional share of common stock for each two shares they hold as of that date and cash will be paid in lieu of fractional shares.
AAON’s stock will begin trading on Aug 16 on the new split-adjusted basis.
Earlier, in 2014, the company had announced a three-for-two stock split of its common stock. The motive behind the stock split is to make the company’s stock more affordable to employees and investors. This, in turn, should push share prices up again.
Stock Performance
Shares of AAON surged by 2.33% on Jul 7 and 73.6% in the past year compared with the Zacks Building Products - Air Conditioner and Heating industry’s 55.9% growth. This Zacks Rank #3 (Hold) company has remained stable at $2.84 over the past 60 days, reflecting 52.7% year-over-year growth.
AAON engineers, manufactures and markets air conditioning and heating equipment. The company maintains a balance between new construction and replacement applications and is making the most of robust replacement demand broadly across the non-residential building market.
Despite inflationary cost pressures, the BasX acquisition, which was closed in December 2021, has been delivering solid results for AAON. While supply-chain issues and inflation caused similar issues, BasX has been flexible in adapting to changes and challenges.
In first-quarter 2023, the company posted organic sales growth of 45.5% year over year, with volumes driving a 23.5% improvement. Gross margin also expanded 380 basis points on improved pricing, moderating cost inflation and production output.
EBITDA and earnings per share (EPS) increased by a whopping 81.3% and 103%, respectively, from the previous year. Encouragingly, backlog at quarter-end was up 30% year over year. EPS growth was the second-highest quarterly improvement in the company’s history.
For 2023, the company expects pricing to contribute in low double-digit growth in sales. Also, gross margin is likely to outpace the previous year’s numbers in each quarter. AAON also targets solid backlog and order trends in the second quarter. Moreover, EPS is also expected to grow in the second and third quarters.
Stocks to Consider
Quanta Services Inc. (PWR - Free Report) is a leading national provider of specialty contracting services and one of the largest contractors serving the transmission and distribution sector of the North American electric utility industry. The company has been capitalizing on megatrends to lead the energy transition and enable technological development. Initiatives toward a reduced-carbon economy continue to drive demand for PWR’s services and depict incremental growth opportunities.
PWR currently carries a Zacks Rank #2 (Buy). Its earnings for 2023 are expected to grow by 10.6%. The consensus mark for PWR’s 2023 earnings has remained stable at $7.01 in the past 60 days.
Gates Industrial Corporation plc (GTES - Free Report) manufactures engineered power transmission and fluid power solutions.
GTES currently carries a Zacks Rank #2. Its expected earnings growth rate for 2023 is 3.5%. The consensus mark for GTES’ 2023 earnings has moved north to $1.18 per share from $1.17 in the past 60 days.
Howmet Aerospace, Inc. (HWM - Free Report) is a global manufacturer of engineered products serving the aerospace, defense and commercial transportation industries. The company is expected to benefit from higher aircraft production rates and ease of supply chains in the transportation market.
Howmet Aerospace currently carries a Zacks Rank #2. HWM’s earnings for 2023 are expected to grow by 20.7%. The consensus mark for HWM’s 2023 earnings has moved north to $1.69 per share from $1.64 in the past 60 days.
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AAON's Three-For-Two Stock Split to Attract More Investors
AAON, Inc.’s (AAON - Free Report) board of directors declared a three-for-two stock split of its common stock in the form of a stock dividend. Each stockholder of record on Jul 28 is entitled to an additional share of common stock for each two shares they hold as of that date and cash will be paid in lieu of fractional shares.
AAON’s stock will begin trading on Aug 16 on the new split-adjusted basis.
Earlier, in 2014, the company had announced a three-for-two stock split of its common stock. The motive behind the stock split is to make the company’s stock more affordable to employees and investors. This, in turn, should push share prices up again.
Stock Performance
Shares of AAON surged by 2.33% on Jul 7 and 73.6% in the past year compared with the Zacks Building Products - Air Conditioner and Heating industry’s 55.9% growth. This Zacks Rank #3 (Hold) company has remained stable at $2.84 over the past 60 days, reflecting 52.7% year-over-year growth.
AAON engineers, manufactures and markets air conditioning and heating equipment. The company maintains a balance between new construction and replacement applications and is making the most of robust replacement demand broadly across the non-residential building market.
Despite inflationary cost pressures, the BasX acquisition, which was closed in December 2021, has been delivering solid results for AAON. While supply-chain issues and inflation caused similar issues, BasX has been flexible in adapting to changes and challenges.
In first-quarter 2023, the company posted organic sales growth of 45.5% year over year, with volumes driving a 23.5% improvement. Gross margin also expanded 380 basis points on improved pricing, moderating cost inflation and production output.
EBITDA and earnings per share (EPS) increased by a whopping 81.3% and 103%, respectively, from the previous year. Encouragingly, backlog at quarter-end was up 30% year over year. EPS growth was the second-highest quarterly improvement in the company’s history.
For 2023, the company expects pricing to contribute in low double-digit growth in sales. Also, gross margin is likely to outpace the previous year’s numbers in each quarter. AAON also targets solid backlog and order trends in the second quarter. Moreover, EPS is also expected to grow in the second and third quarters.
Stocks to Consider
Quanta Services Inc. (PWR - Free Report) is a leading national provider of specialty contracting services and one of the largest contractors serving the transmission and distribution sector of the North American electric utility industry. The company has been capitalizing on megatrends to lead the energy transition and enable technological development. Initiatives toward a reduced-carbon economy continue to drive demand for PWR’s services and depict incremental growth opportunities.
PWR currently carries a Zacks Rank #2 (Buy). Its earnings for 2023 are expected to grow by 10.6%. The consensus mark for PWR’s 2023 earnings has remained stable at $7.01 in the past 60 days.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Gates Industrial Corporation plc (GTES - Free Report) manufactures engineered power transmission and fluid power solutions.
GTES currently carries a Zacks Rank #2. Its expected earnings growth rate for 2023 is 3.5%. The consensus mark for GTES’ 2023 earnings has moved north to $1.18 per share from $1.17 in the past 60 days.
Howmet Aerospace, Inc. (HWM - Free Report) is a global manufacturer of engineered products serving the aerospace, defense and commercial transportation industries. The company is expected to benefit from higher aircraft production rates and ease of supply chains in the transportation market.
Howmet Aerospace currently carries a Zacks Rank #2. HWM’s earnings for 2023 are expected to grow by 20.7%. The consensus mark for HWM’s 2023 earnings has moved north to $1.69 per share from $1.64 in the past 60 days.