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A. O. Smith Corporation (AOS), headquartered in Milwaukee, Wisconsin, manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products. With a market cap of $9.1 billion, the company specializes in offering innovative and energy-efficient solutions and products, which are developed and sold on a global platform. The leading global water technology company is expected to announce its fiscal first-quarter earnings for 2026 before the market opens on Thursday, Apr. 30.
Ahead of the event, analysts expect AOS to report a profit of $0.94 per share on a diluted basis, down 1.1% from $0.95 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect AOS to report EPS of $4.02, up 4.4% from $3.85 in fiscal 2025. Its EPS is expected to rise 8.7% year over year to $4.37 in fiscal 2027.
AOS stock has underperformed the S&P 500 Index’s ($SPX) 29.4% gains over the past 52 weeks, with shares up 4.9% during this period. Similarly, it underperformed the State Street Industrial Select Sector SPDR ETF’s (XLI) 38.9% gains over the same time frame.
AOS' underperformance was driven by tough competition in the wholesale residential water heater channel, impacted by soft new construction and retail channel share gains.
On Jan. 29, AOS shares closed up by 5.3% after reporting its Q4 results. Its adjusted EPS of $0.90 exceeded Wall Street expectations of $0.84. The company’s revenue was $912.5 million, missing Wall Street forecasts of $923.1 million. AOS expects full-year EPS to be $3.85 to $4.15, and revenue in the range of $3.9 billion to $4 billion.
Analysts’ consensus opinion on AOS stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 13 analysts covering the stock, four advise a “Strong Buy” rating, eight give a “Hold,” and one recommends a “Strong Sell.” AOS’ average analyst price target is $80.40, indicating a potential upside of 22% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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