Did they just beat EPS? A. O. Smith (NYSE:AOS)

Earnings results for A. O. Smith (NYSE:AOS)

A.O Smith Corporation is expected* to report earnings on 10/29/2020 before market open. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 8 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.53. The reported EPS for the same quarter last year was $0.53.

A. O. Smith last issued its quarterly earnings results on July 30th, 2020. The industrial products company reported $0.45 EPS for the quarter, beating the consensus estimate of $0.42 by $0.03. The firm earned $663.90 million during the quarter, compared to the consensus estimate of $664.82 million. A. O. Smith has generated $2.22 earnings per share over the last year and currently has a price-to-earnings ratio of 28.1. A. O. Smith has confirmed that its next quarterly earnings report will be published on Thursday, October 29th, 2020.

Analyst Opinion on A. O. Smith (NYSE:AOS)

12 Wall Street analysts have issued ratings and price targets for A. O. Smith in the last 12 months. Their average twelve-month price target is $48.50, predicting that the stock has a possible downside of 5.75%. The high price target for AOS is $62.00 and the low price target for AOS is $32.00. There are currently 2 sell ratings, 7 hold ratings and 3 buy ratings for the stock, resulting in a consensus rating of “Hold.”

A. O. Smith has received a consensus rating of Hold. The company’s average rating score is 2.08, and is based on 3 buy ratings, 7 hold ratings, and 2 sell ratings. According to analysts’ consensus price target of $48.50, A. O. Smith has a forecasted downside of 5.8% from its current price of $51.46. A. O. Smith has only been the subject of 4 research reports in the past 90 days.

Dividend Strength: A. O. Smith (NYSE:AOS)

A. O. Smith pays a meaningful dividend of 1.81%, higher than the bottom 25% of all stocks that pay dividends. A. O. Smith does not have a long track record of dividend growth. The dividend payout ratio of A. O. Smith is 43.24%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, A. O. Smith will have a dividend payout ratio of 42.11% next year. This indicates that A. O. Smith will be able to sustain or increase its dividend.

Insiders buying/selling: A. O. Smith (NYSE:AOS)

In the past three months, A. O. Smith insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $2,384,063.00 in company stock. Only 0.29% of the stock of A. O. Smith is held by insiders. 78.36% of the stock of A. O. Smith is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of A. O. Smith (NYSE:AOS

Earnings for A. O. Smith are expected to grow by 22.58% in the coming year, from $1.86 to $2.28 per share. The P/E ratio of A. O. Smith is 28.12, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 18.64. The P/E ratio of A. O. Smith is 28.12, which means that it is trading at a less expensive P/E ratio than the Industrial Products sector average P/E ratio of about 30.06. A. O. Smith has a PEG Ratio of 3.69. PEG Ratios above 1 indicate that a company could be overvalued. A. O. Smith has a P/B Ratio of 5.01. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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