SunTrust Banks Weighs in on A. O. Smith Corp’s Q3 2019 Earnings (AOS)

A. O. Smith Corp (NYSE:AOS) – Stock analysts at SunTrust Banks cut their Q3 2019 EPS estimates for A. O. Smith in a report released on Wednesday, October 31st. SunTrust Banks analyst C. Brady now forecasts that the industrial products company will post earnings per share of $0.63 for the quarter, down from their previous estimate of $0.66. SunTrust Banks has a “Buy” rating and a $71.00 price objective on the stock. SunTrust Banks also issued estimates for A. O. Smith’s FY2019 earnings at $2.80 EPS, Q1 2020 earnings at $0.73 EPS, Q2 2020 earnings at $0.81 EPS, Q3 2020 earnings at $0.69 EPS and FY2020 earnings at $3.10 EPS.

A. O. Smith (NYSE:AOS) last released its quarterly earnings results on Tuesday, October 30th. The industrial products company reported $0.61 EPS for the quarter, missing the consensus estimate of $0.63 by ($0.02). The company had revenue of $754.10 million for the quarter, compared to analyst estimates of $805.92 million. A. O. Smith had a return on equity of 24.98% and a net margin of 10.83%. The business’s revenue was up .6% on a year-over-year basis. During the same period last year, the firm posted $0.54 earnings per share.

A number of other brokerages have also issued reports on AOS. Zacks Investment Research lowered A. O. Smith from a “buy” rating to a “hold” rating in a research report on Tuesday, July 17th. Oppenheimer reaffirmed a “hold” rating on shares of A. O. Smith in a research report on Tuesday, September 18th. BMO Capital Markets reaffirmed a “buy” rating and issued a $73.00 target price on shares of A. O. Smith in a research report on Thursday, July 26th. Boenning Scattergood reaffirmed a “buy” rating and issued a $75.00 target price on shares of A. O. Smith in a research report on Wednesday, July 25th. Finally, ValuEngine lowered A. O. Smith from a “hold” rating to a “sell” rating in a research report on Thursday, September 27th. Two research analysts have rated the stock with a sell rating, three have issued a hold rating and five have assigned a buy rating to the company. A. O. Smith currently has a consensus rating of “Hold” and an average target price of $65.75.

Shares of AOS opened at $48.09 on Thursday. A. O. Smith has a 52-week low of $40.34 and a 52-week high of $68.39. The company has a market capitalization of $7.77 billion, a price-to-earnings ratio of 22.16, a price-to-earnings-growth ratio of 1.48 and a beta of 1.45. The company has a current ratio of 2.16, a quick ratio of 1.77 and a debt-to-equity ratio of 0.11.

Several institutional investors and hedge funds have recently made changes to their positions in AOS. LPL Financial LLC raised its position in shares of A. O. Smith by 9.4% during the 1st quarter. LPL Financial LLC now owns 16,846 shares of the industrial products company’s stock valued at $1,071,000 after acquiring an additional 1,449 shares in the last quarter. Allianz Asset Management GmbH raised its position in shares of A. O. Smith by 72.6% during the 1st quarter. Allianz Asset Management GmbH now owns 236,122 shares of the industrial products company’s stock valued at $15,015,000 after acquiring an additional 99,293 shares in the last quarter. Suntrust Banks Inc. acquired a new stake in shares of A. O. Smith during the 1st quarter valued at approximately $424,000. Private Trust Co. NA raised its position in shares of A. O. Smith by 69.9% during the 2nd quarter. Private Trust Co. NA now owns 9,410 shares of the industrial products company’s stock valued at $556,000 after acquiring an additional 3,873 shares in the last quarter. Finally, Bath Savings Trust Co raised its position in shares of A. O. Smith by 37.3% during the 2nd quarter. Bath Savings Trust Co now owns 5,670 shares of the industrial products company’s stock valued at $335,000 after acquiring an additional 1,540 shares in the last quarter. 75.40% of the stock is currently owned by institutional investors.

In other A. O. Smith news, Director Paul W. Jones sold 4,591 shares of the company’s stock in a transaction that occurred on Tuesday, August 21st. The stock was sold at an average price of $58.92, for a total value of $270,501.72. Following the transaction, the director now directly owns 214,558 shares of the company’s stock, valued at approximately $12,641,757.36. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 1.28% of the company’s stock.

The firm also recently announced a quarterly dividend, which will be paid on Thursday, November 15th. Shareholders of record on Wednesday, October 31st will be given a $0.22 dividend. This represents a $0.88 dividend on an annualized basis and a dividend yield of 1.83%. This is a positive change from A. O. Smith’s previous quarterly dividend of $0.18. The ex-dividend date of this dividend is Tuesday, October 30th. A. O. Smith’s dividend payout ratio is presently 40.55%.

A. O. Smith Company Profile

A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, and water treatment products in North America, China, Europe, and India. The company offers water heaters for residences, restaurants, hotels and motels, office buildings, laundries, car washes, and small businesses; residential and commercial boilers for use in space heating applications for hospitals, schools, hotels, and other large commercial buildings; and water treatment products, including on-the-go filtration bottles, point-of-use carbon and reverse osmosis products, point-of-entry water softeners, and whole-home water filtrations products for residences, restaurants, hotels, and offices.

Further Reading: Growth Stocks

Earnings History and Estimates for A. O. Smith (NYSE:AOS)

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