A.O. Smith Beats Estimates on Top and Bottom Lines
A.O. Smith (NYS: AOS) reported earnings on Jan. 27. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), A.O. Smith beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and GAAP earnings per share increased significantly.
Gross margins improved, operating margins grew, net margins contracted.
A.O. Smith booked revenue of $475.8 million. The 10 analysts polled by S&P Capital IQ anticipated a top line of $460.1 million. Sales were 29% higher than the prior-year quarter's $370.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.68. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.64 per share on the same basis. GAAP EPS of $3.91 for Q4 were 0.4% higher than the prior-year quarter's $0.69 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 32.6%, 120 basis points better than the prior-year quarter. Operating margin was 10.3%, 210 basis points better than the prior-year quarter. Net margin was 6.7%, 200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $462.7 million. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $1.94 billion. The average EPS estimate is $2.83.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 145 members out of 149 rating the stock outperform, and four members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give A.O. Smith a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on A.O. Smith is outperform, with an average price target of $46.56.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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