U.S. Markets close in 3 hrs 50 mins

Free Post Earnings Research Report: A. O. Smith Delivered Record Quarterly Sales; Adjusted EPS Surged 20%

Stock Monitor: Allied Motion Technologies Post Earnings Reporting

LONDON, UK / ACCESSWIRE / May 14, 2018 / If you want access to our free earnings report on A. O. Smith Corp. (NYSE: AOS), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=AOS. The Company reported its first quarter fiscal 2018 operating and financial results on April 26, 2018. The maker of water heaters and boiler surpassed earnings estimate. The Company also provided sales and earnings guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:


Active-Investors.com is currently working on the research report for Allied Motion Technologies Inc. (NASDAQ: AMOT), which also belongs to the Industrial Goods sector as the Company A. O. Smith. Do not miss out and become a member today for free to access this upcoming report at:


Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, A. O. Smith most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:


Earnings Highlights and Summary

A. O. Smith announced record sales of $788.0 million for the first quarter of the fiscal year 2018. The Company's sales were 6.5% higher than the $740.0 million reported in Q1 2017. However, A. O. Smith's revenue numbers lagged analysts' estimates of $792.9 million.

A. O. Smith announced net earnings of $98.8 million, or $0.57 per share, in Q1 2018 compared to $87.7 million, or $0.50 per share, in Q1 2017. The Company's adjusted net earnings were $103.8 million, or $0.60 per share, in the reported quarter compared to $87.7 million, or $0.50 per share, in the prior year's same quarter, and excluded after-tax restructuring and impairment charges of $5.0 million, or $0.03 per share, related to the closing of the Company's commercial water heater plant in Renton, Washington, as well as to the transfer of production to plants in Tennessee and South Carolina. A. O. Smith's earnings beat Wall Street's estimates of $0.58 per share.

Segment Results

During Q1 2018, A. O. Smith's North America segment's sales rose 3% to 501.7 million compared to $487.3 million in Q1 2017. A. O. Smith's increased boiler volumes and increased sales due to pricing actions for water heaters in mid-2017 in response to higher steel costs were partially offset by lower water heater volumes in Canada. The segment's earnings increased 2% to $106.0 million in Q1 2018 versus the $104.2 million earned in the prior year's comparable quarter. The North America segment's margin improved to 22.5% in Q1 2018 compared to 21.4% in Q1 2017.

For Q1 2018, A. O. Smith's Rest of World segment's sales increased 13% to $293.8 million compared to $259.5 million in Q1 2017. In China, the segment's sales rose 13%, including approximately $21 million of benefit from currency translation due to the appreciation of the China currency, compared to the prior year. For the reported quarter, the segment's earnings increased 11% to $36.1 million compared to the $32.5 million earned in the year earlier corresponding quarter. For Q1 2018, the Rest of World segment's margin was 12.3%, a modest decrease from 12.5% in Q1 2017.

Cash Matters

During Q1 2018, A. O. Smith repurchased approximately 520,000 shares of its common stock for a total of $33 million. Approximately 1.9 million shares remained on the Company's existing repurchase authority as of March 31, 2018.

At the end of Q1 2018, A. O. Smith's leverage declined to 14.6% from 20.0% at the end of FY17. The reduction was partially due to the repatriation of over $210 million of cash from outside the US, which was used to pay down floating rate debt.

During Q1 2018, A. O. Smith's cash provided by operations was $43.2 million compared to $11.5 million in Q1 2017. The Company's reported quarter cash flow benefited from higher adjusted net earnings and smaller increases in working capital. At the end of March 2018, the Company had cash and marketable securities balances totaling $679.7 million, located offshore, while its net cash position was approximately $386.5 million.

A. O. Smith's effective income tax rate was 21.2% in Q1 2018, lower than the rate of 27.2% in Q1 2017. The lower rate was due to lower federal income taxes resulting from the US Tax Cut and Jobs Act 2017 (TCJA), which was partially offset by lower stock-based compensation tax benefits.


For the full fiscal year 2018, A. O. Smith is forecasting an organic growth, supported by stable water heater replacement demand, to result in a sales growth of between 10% and 10.75%. The Company raised its adjusted earnings per share guidance to a range of $2.55 to $2.61 for FY18.

Stock Performance Snapshot

May 11, 2018 - At Friday's closing bell, A. O. Smith's stock marginally fell 0.14%, ending the trading session at $63.99.

Volume traded for the day: 944.57 thousand shares.

Stock performance in the last three-month – up 4.97%; previous six-month period – up 7.42%; past twelve-month period – up 18.26%; and year-to-date – up 4.42%

After last Friday's close, A. O. Smith's market cap was at $10.87 billion.

Price to Earnings (P/E) ratio was at 29.07.

The stock has a dividend yield of 1.13%.

The stock is part of the Industrial Goods sector, categorized under the Industrial Electrical Equipment industry. This sector was up 0.1% at the end of the session.


Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.


The non-sponsored content contained herein has been prepared by a writer (the ''Author'') and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst. For further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.


A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.


This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.


For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com

Phone number: 73 29 92 6381

Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active-Investors