AO Smith boosts full-year earnings forecast

AO Smith increases estimate of 2009 earnings per share, stock jumps

• On 9:05 am EDT, Friday October 16, 2009

MILWAUKEE (AP) -- A.O. Smith Corp., which makes water heaters and electric motors, on Friday raised its 2009 earnings estimate above the level expected by Wall Street.

The company said it expects per-share earnings this year between $2.60 and $2.75, excluding one-time charges and gains.

Analysts polled by Thomson Reuters expect, on average, $2.33 per share. Such expectations typically exclude one-time items.

The increased earnings estimate plus a stronger-than-expected third-quarter profit lifted shares in premarket trading by $3.39, or 7.8 percent, to $46.95.

Third-quarter profit surged to $34.6 million, or $1.14 per share, from $5.8 million, or 61 cents per share, in the year-earlier quarter.

Excluding one-time gains, the company earned 99 cents per share. Thomson Reuters' analyst survey showed an average forecast of 69 cents a share.