A. O. Smith Q4 EPS Tops Estimates at $0.90 on Mixed Revenue
A. O. Smith reported Q4 adjusted EPS of $0.90 versus $0.84 consensus, while revenue of $912.5 million fell short of $928.2 million estimates on lighter guidance. Goldman Sachs lifted its price target to $69 from $63 and Stifel raised theirs to $85 following mixed results.
1. Q4 Financial Results
A. O. Smith reported Q4 adjusted EPS of $0.90, beating consensus of $0.84, while revenue totaled $912.5 million versus consensus $928.2 million. Management described full-year 2026 revenue guidance as lighter than expected, reflecting ongoing housing deceleration and mixed industry demand.
2. Analyst Price Target Revisions
Goldman Sachs raised its price target to $69 from $63 and maintained a Sell rating, citing housing deceleration and tough China comps. Stifel lifted its target to $85 from $80 with a Buy rating, and Baird increased its target to $77 from $76, retaining a Neutral stance.
3. Strategic Commentary and Outlook
CEO Steve Shafer highlighted resilience and record profitability in the commercial water heater and boiler segments, noted expanded China margins despite volume pressure, and emphasized that acquisitions of Leonard Valve and Heat-Timer position the company for secular growth opportunities.