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A.O. Smith (AOS) to Report Q1 Earnings: What's in the Cards?

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A. O. Smith Corporation AOS is scheduled to report first-quarter 2022 results on Apr 28, before market open.

AOS delivered an earnings surprise of 13.7%, on average, in the trailing four quarters, beating estimates all through. In the last reported quarter, A. O. Smith came up with earnings of 87 cents, which beat the Zacks Consensus Estimate of 77 cents by 13%.

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In the past three months, shares of A. O. Smith have declined 13.4% compared with the industry’s fall of 5.3%

Factors at Play

A. O. Smith is expected to have benefited in first-quarter 2022 from strong demand for water treatment products and boilers, supported by its robust direct & retail selling channels and pricing actions in the North-American segment. Also, increasing demand across China and India along with AOS’ focus on price management and production efficiency, is likely to have boosted its performance in the to-be-reported quarter.

Acquisitions made by A. O. Smith are likely to have impacted its top line positively in first-quarter 2022. The buyout of Canada-based Giant Factories, Inc (October 2021) is likely to have strengthened its commercial water heater offerings. Also, for first-quarter 2022, AOS’ purchase of Master Water Conditioning Corporation (July 2021) might have benefited its water treatment business in North America.

However, over time, A. O. Smith’s performance has been negatively impacted by high costs and expenses. Although supply-chain constraints moderated, higher logistic cost, labor shortage and an increase in raw material cost might have been the spoilsport in the to-be-reported quarter.

The Zacks Consensus Estimate for revenues from A. O. Smith's North America segment is currently pegged at $741 million, indicating growth of 3.6% and 34% on a sequential basis and from the year-ago quarter’s reported figure, respectively. The consensus estimate for revenues from the Rest of the World stands at $235 million, indicating an 18.4% decrease sequentially and a 5.9% improvement from the year-ago quarter’s reported figure.

The consensus estimate for A. O. Smith’s first-quarter total revenues is currently pegged at $965 million, suggesting a decrease of 3.1% from the quarter-ago reported number and 25.5% growth from the year-earlier period’s actuals. The consensus estimate for earnings of 75 cents suggests a decline of 13.8% sequentially but an improvement of 25% from the year-ago quarter’s reported figure.

Earnings Whispers

Our proven model suggests 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, which is the case here as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: A.O. Smith has an Earnings ESP of +0.67%.

A. O. Smith Corporation Price and EPS Surprise

A. O. Smith Corporation Price and EPS Surprise
A. O. Smith Corporation Price and EPS Surprise

A. O. Smith Corporation price-eps-surprise | A. O. Smith Corporation Quote

Zacks Rank: A. O. Smith presently carries a Zacks Rank #3.

Other Stocks to Consider

Here are some other companies worth considering as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.

IDEX Corporation IEX has an Earnings ESP of + 0.29% and a Zacks Rank of 3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Its earnings surprise in the last four quarters was 1.46%, on average, in the past 60 days, IDEX’s earnings estimates have increased 0.9% for 2022. IDEX’s shares have lost 11.1% in the past three months.

Stanley Black & Decker, Inc. SWK has an Earnings ESP of +0.18% and a Zacks Rank of 3, currently. Stanley Black & Decker delivered a trailing four-quarter earnings surprise of 13.71%, on average.

Earnings estimates of Stanley Black & Decker have increased 3% for 2022 in the past 60 days. Its shares have declined 20% in the past three months.

AGCO Corporation AGCO has an Earnings ESP of +0.93% and is Zacks #3 Ranked, currently. Its earnings surprise in the last four quarters was 56.7%, on average.

In the past 60 days, AGCO’s earnings estimates have decreased 0.7% for 2022. The stock has grown 15.6% in the past three months.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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AGCO Corporation (AGCO) : Free Stock Analysis Report

A. O. Smith Corporation (AOS) : Free Stock Analysis Report

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