- New Strong Sell Stocks for May 7th
May 7, 2026
Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:
Bank of Marin Bancorp BMRC is a California State chartered bank. The Zacks Consensus Estimate for its current year earnings has been revised 8.3% downward over the last 60 days.
AllianceBernstein AB provides diversified investment management services, primarily to pension funds, endowments, foreign financial institutions, and to individual investors. The Zacks Consensus Estimate for its current year earnings has been revised almost 6% downward over the last 60 days.
A. O. Smith AOS is one of the leading manufacturers of commercial and residential water heating equipment, and water treatment products of the world. The Zacks Consensus Estimate for its current year earnings has been revised almost 5.5% downward over the last 60 days.
View the entire Zacks Rank #5 List.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
A. O. Smith Corporation (AOS) : Free Stock Analysis Report
AllianceBernstein Holding L.P. (AB) : Free Stock Analysis Report
Bank of Marin Bancorp (BMRC) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
View Comments
- New Strong Sell Stocks for May 7th
May 7, 2026 · zacks.com
BMRC, AB and AOS have been added to the Zacks Rank #5 (Strong Sell) List on May 7, 2026.
- Eaton's Q1 Earnings and Revenues Surpass Estimates, Guidance Raised
May 5, 2026
Eaton Corporation ETN reported first-quarter 2026 earnings of $2.81 per share, which surpassed the Zacks Consensus Estimate of $2.74 by 2.6%. Earnings per share during the quarter were up 3.3% year over year. The figure was within the company’s guidance of $2.65-$2.85.
GAAP earnings for the reported quarter were $2.22 per share, down 9.4% from $2.45 in the year-ago quarter. The difference between GAAP and operating earnings in the reported quarter was due to charges of 29 cents for intangible assets amortization, 8 cents for the multi-year restructuring program and 22 cents related to acquisitions and divestitures.
Eaton’s Q1 Revenues
Total quarterly revenues were $7.45 billion, which improved 16.9% from the year-ago period. The year-over-year growth in sales was due to 10% increase in organic sales, 4% increase from contributions from acquired assets and 3% growth from foreign exchange. Quarterly revenues surpassed the Zacks Consensus Estimate of $7.1 billion by 5.2%.
Eaton Corporation, PLC Price, Consensus and EPS SurpriseEaton Corporation, PLC Price, Consensus and EPS Surprise
Eaton Corporation, PLC price-consensus-eps-surprise-chart | Eaton Corporation, PLC Quote
ETN’s Segmental Details
Electrical Americas’ total first-quarter sales were $3.6 billion, up 20% year over year. The rise was due to 14% increase in organic sales, 5% growth from acquired assets and 1% growth from foreign exchange. Operating profit was $0.92 billion, up 2% year over year.
Electrical Global’s total sales were $1.94 billion, up 21% from the year-ago quarter. The year-over-year growth was due to an increase in organic sales by 9%. Acquisition and positive currency translation added 6% each. Operating profit was $373 million, up 24% year over year.
Aerospace’s total sales were $1.14 billion, up 16% year over year. The metric was driven by organic growth of 9%, acquisition 5% and positive currency translation of 2%. Operating profit was $304 million, up 35% year over year.
Vehicle’s total sales were $586 million, down 9% year over year, due to a 13% decline in organic sales, offset by 4% increase from positive currency translation. Operating profit was $96 million, down 21% year over year.
Mobility segment’s total sales were $766 million, down 2% year over year, caused by a 6% decline in organic sales, partially offset by positive currency translation of 4%. Operating income was $89 million compared with $91 million in the year-ago quarter.
Highlights of ETN’s Q1 Release
Selling and administrative expenses were $1.27 billion, up 21.1% year over year.
Research and development expenses were $211 million, up 6.6% from the year-ago quarter’s level.
Interest expenses were $106 million, up 221.2% year over year.
Eaton’s backlog, at the end of first-quarter 2026, increased 44% in Electrical Americas, 26% in Aerospace and 73% in Electric Global on a rolling 12-month basis.
In the first quarter, the company also closed $11 billion of value-enhancing strategic acquisitions. The strategic acquisitions in high-growth, high-margin markets support long-term value creation.
Story Continues
Financial Update of ETN
As of March 31, 2026, cash was $565 million compared with $622 million as of Dec. 31, 2025.
Long-term debt was $565 million as of March 31, 2026, compared with $622 million as of Dec. 31, 2025.
ETN’s long-term debt was $18.53 billion as of March 31, 2026, up from $8.75 billion as of Dec. 31, 2025.
Guidance of Eaton
Eaton’s second-quarter 2026 earnings are expected in the range of $3-$3.10 per share. The company expects organic growth in the range of 9-11%.
Eaton raised its adjusted earnings per share in the range of$13.05-$13.50 for 2026, up from the previous guidance of $13-$13.50. The company anticipates organic sales growth for 2026 in the range of 9-11%. Eaton expects its segment margin to be in the range of 24.1-24.5%.
ETN’s Zacks Rank
Eaton has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
A. O. Smith Corporation’s AOS first-quarter 2026 adjusted earnings of 85 cents per share missed the Zacks Consensus Estimate of 94 cents. The bottom line decreased 11% on a year-over-year basis.
The long-term (three to five years) earnings growth rate is pinned at 12%. The Zacks Consensus Estimate of $3.86 for 2026 earnings per share has increased 0.26% year over year.
ABB Ltd. ABBNY reported quarterly earnings of 73 cents per share, lagging the Zacks Consensus Estimate of 79 cents by 11.1%.
The long-term earnings growth rate is pinned at 17.25%. The Zacks Consensus Estimate for 2026 earnings per share has increased 52.21% year over year.
AZZ AZZ reported quarterly earnings of $1.34 per share, beating the Zacks Consensus Estimate of $1.19 by 12.61%.
The Zacks Consensus Estimate for fiscal 2026 earnings per share has increased 9.85% year over year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Eaton Corporation, PLC (ETN) : Free Stock Analysis Report
A. O. Smith Corporation (AOS) : Free Stock Analysis Report
AZZ Inc. (AZZ) : Free Stock Analysis Report
ABB Ltd (ABBNY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
View Comments
- Is A. O. Smith (AOS) Offering Value After Recent Share Price Weakness?
May 4, 2026
Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE.
If you are wondering whether A. O. Smith at around US$60 per share offers value or adds risk to your portfolio, this article explains what the current price might imply. The stock has recently moved lower, with returns of 6.3% over 7 days, 6.2% over 30 days, 11.7% year to date and 10.0% over the last year. These changes can affect how the market views both its potential and its risks. Recent news coverage has focused on how established industrial names are being reassessed as interest in different parts of the Building industry shifts. For A. O. Smith, that context matters because it influences how investors weigh its quality against the price they are paying. Right now, A. O. Smith scores a 5/6 valuation check. The rest of this article will walk through traditional approaches such as DCF and multiples, then finish with a more holistic way to think about what that score may mean for you.
Find out why A. O. Smith's -10.0% return over the last year is lagging behind its peers.
Approach 1: A. O. Smith Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow, or DCF, model estimates what a company could be worth today by projecting its future cash flows and discounting them back to the present.
For A. O. Smith, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is about $624.1 million. Analysts supply free cash flow estimates out to 2029, which are then extended by Simply Wall St to give a longer runway of projections.
Under these assumptions, projected free cash flow in 2035 is $791.5 million, with intermediate years ranging from $522.9 million in 2026 to $764.2 million in 2034. All figures are in US$ and stay below $1b, so the focus is on hundreds of millions of annual free cash flow rather than multi billion levels.
When these projected cash flows are discounted back, the model points to an estimated intrinsic value of about $81.16 per share. Compared with a current share price around $60, this implies the stock screens as roughly 25.6% undervalued on this DCF view.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests A. O. Smith is undervalued by 25.6%. Track this in your watchlist or portfolio, or discover 50 more high quality undervalued stocks.AOS Discounted Cash Flow as at May 2026
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for A. O. Smith.
Approach 2: A. O. Smith Price vs Earnings
For a profitable company like A. O. Smith, the P/E ratio is a commonly used yardstick because it links what you pay per share to the earnings that business is currently producing. Investors typically look for a P/E that lines up with their expectations for future growth and the level of risk they are taking on, with higher growth or lower perceived risk often justifying a higher “normal” or “fair” P/E.
Story Continues
A. O. Smith currently trades on a P/E of about 15.8x. That sits below the Building industry average P/E of roughly 21.7x and also below the broader peer average of about 28.8x. Simply Wall St then goes a step further with its proprietary “Fair Ratio” for A. O. Smith, which is 21.2x. This Fair Ratio reflects what the P/E might be expected to look like after considering factors such as the company’s earnings growth profile, profit margins, industry, market cap and key risks.
Because the Fair Ratio is tailored to A. O. Smith’s own characteristics rather than just broad sector or peer comparisons, it can offer a more company specific anchor for valuation. With the current P/E of 15.8x below the Fair Ratio of 21.2x, the shares appear to screen as undervalued on this multiple view.
Result: UNDERVALUEDNYSE:AOS P/E Ratio as at May 2026
P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 17 top founder-led companies.
Upgrade Your Decision Making: Choose your A. O. Smith Narrative
Earlier it was mentioned that there is an even better way to understand valuation. Narratives bring your view of A. O. Smith together into a simple story that links assumptions about future revenue, earnings and margins to a forecast, a Fair Value, and finally a clear comparison with today’s price. All of this appears within the Simply Wall St Community page, where Narratives update automatically as new news or earnings arrive. One investor might build a more optimistic A. O. Smith story that aligns with a Fair Value near the US$100 bullish target, while another could build a more cautious version closer to the US$61 bearish view. This gives you a practical, side-by-side sense of whether the current price looks high, low or close to your own number before deciding whether to buy, hold or sell.
Do you think there's more to the story for A. O. Smith? Head over to our Community to see what others are saying!NYSE:AOS 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include AOS.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
View Comments
- AOS Q1 Deep Dive: Margin Pressure and Macroeconomic Headwinds Shape Water Heater Maker’s Outlook
May 3, 2026
Water heating and treatment solutions company A.O. Smith (NYSE:AOS) fell short of the market’s revenue expectations in Q1 CY2026, with sales falling 1.9% year on year to $945.6 million. On the other hand, the company’s outlook for the full year was close to analysts’ estimates with revenue guided to $3.95 billion at the midpoint. Its non-GAAP profit of $0.85 per share was 9.9% below analysts’ consensus estimates.
Is now the time to buy AOS? Find out in our full research report (it’s free).
A. O. Smith (AOS) Q1 CY2026 Highlights:
Revenue: $945.6 million vs analyst estimates of $979.5 million (1.9% year-on-year decline, 3.5% miss) Adjusted EPS: $0.85 vs analyst expectations of $0.94 (9.9% miss) Adjusted EBITDA: $185.7 million vs analyst estimates of $204.9 million (19.6% margin, 9.4% miss) The company reconfirmed its revenue guidance for the full year of $3.95 billion at the midpoint Adjusted EPS guidance for the full year is $3.85 at the midpoint, missing analyst estimates by 3.2% Operating Margin: 17.1%, down from 19% in the same quarter last year Market Capitalization: $8.55 billion
StockStory’s Take
A. O. Smith’s first quarter results reflected a challenging operating environment, with management attributing weakness primarily to declining sales in China and weather-related disruptions in North America. CEO Stephen Shafer acknowledged that production constraints at the Ashland City facility and lower residential water heater demand weighed on North American performance. Additionally, Shafer noted, “Our China sales decreased 17% in local currency in the first quarter,” citing reduced government stimulus and low consumer confidence as persistent obstacles, particularly in premium market segments.
Looking ahead, management’s full-year outlook is shaped by expectations of ongoing cost inflation and continued softness in China, partially offset by pricing actions and operational efficiency initiatives. Shafer emphasized the importance of announced price increases on water heater and boiler products, stating, “We expect to begin realizing the benefit of these announced price increases beginning in the third quarter.” CFO Charles Lauber added that restructuring of the North America water treatment business should drive incremental margin improvement in future years, while strategic assessment in China remains ongoing.
Key Insights from Management’s Remarks
Management pointed to several factors affecting both recent performance and future guidance, including external cost inflation, regulatory changes, and evolving channel dynamics in key markets.
Story Continues
China market softness: The company reported double-digit declines in China sales, citing the end of most government stimulus programs and ongoing weak consumer confidence. Management expects these market headwinds to persist and is continuing a strategic assessment to determine the best path forward for the China business. North America weather impact: Severe weather led to production and shipping constraints at the Ashland City facility, resulting in lost sales and incremental costs. However, swift operational response and insurance coverage helped mitigate the overall financial impact. Water heater and boiler price increases: To offset rising input costs, A. O. Smith announced price increases of approximately 4% to 7% on most water heater and boiler products. These increases are expected to benefit results starting in the third quarter, following a lag due to timing and customer adoption. Water treatment business restructuring: Management is executing a second phase of restructuring in the North America water treatment segment, including brand and manufacturing footprint rationalization. The goal is to expand segment margins by 200 basis points in 2026 and achieve further improvement in 2027, aided by streamlining efforts and focus on the A. O. Smith brand. Leonard Valve acquisition integration: The recently acquired Leonard Valve business contributed $16 million in sales and is performing ahead of expectations. Management highlighted its strong fit within A. O. Smith’s broader water management strategy and noted that integration efforts are on track, with double-digit sales growth targeted for the year.
Drivers of Future Performance
Looking forward, management expects margin pressures from cost inflation and continued international demand weakness, but is relying on pricing, operational improvements, and select growth investments to support results.
Cost inflation and pricing actions: Management cited rising steel, transportation, and material costs as key headwinds, with full-year steel costs expected to increase by approximately 15%. Price increases in water heaters and boilers are intended to offset these pressures, but margin improvement is only expected once pricing takes effect in the third quarter. CFO Charles Lauber stated that “we will see a little pressure in Q2 before pricing benefits begin, and that should be overcome in Q3 and Q4.” China and water treatment strategy: Persistent weakness in China is expected to continue throughout the year, with further sales declines projected. The company is focused on completing its strategic assessment in China and streamlining its North America water treatment business, aiming for incremental margin gains through restructuring and operational focus. CEO Shafer emphasized, “actions we have identified to improve the performance of our China business are pending the conclusion of our assessment.” Boiler and valve platform growth: Management sees ongoing opportunity in the North America boiler business, expecting 6%–8% top-line growth due to backlog strength and carryover pricing. The Leonard Valve acquisition is expected to deliver double-digit growth and supports expansion in water management, an area flagged as a key M&A focus for the company.
Catalysts in Upcoming Quarters
In the quarters ahead, the StockStory team will closely monitor (1) the pace and effectiveness of price increase implementation and resulting margin recovery, (2) progress on the China strategic assessment and any announced actions or partnerships, and (3) ongoing restructuring and margin expansion in North America water treatment. Additional focus will be placed on integration milestones for Leonard Valve and the evolution of input cost trends, particularly steel and transportation expenses.
A. O. Smith currently trades at $62.29, down from $63.68 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
Our Favorite Stocks Right Now
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it's flagging for this month - FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
View Comments
- A. O. Smith Misses Earnings & Sales Estimates in Q1, Lowers 26' View
Apr 30, 2026
A. O. Smith Corporation’s AOS first-quarter 2026 adjusted earnings of 85 cents per share missed the Zacks Consensus Estimate of 94 cents. The bottom line decreased 11% on a year-over-year basis.
Net sales of $945.6 million missed the consensus estimate of $969 million. The top line declined 2% year over year, owing to weakness in the consumer appliance market in China.
Segmental Details
A. O. Smith’s quarterly sales in North America (comprising the United States and Canada operations) increased 1% year over year to $753.4 million. Our estimate for segmental revenues was $760.9 million. This uptick was caused by benefits from effective pricing and the positive contribution of the Leonard Valve buyout.
Segmental earnings were $175.4 million, down 5.3% year over year.
Quarterly sales in the Rest of the World (including China, India and Europe) segment were $200.7 million, down 11% year over year. Organic sales in China fell 17% in local currency.
The segment’s earnings were $12.4 million, down 37.1% year over year due to weaker sales volumes, which were partially offset by cost reduction actions.
A. O. Smith Corporation Price, Consensus and EPS SurpriseA. O. Smith Corporation Price, Consensus and EPS Surprise
A. O. Smith Corporation price-consensus-eps-surprise-chart | A. O. Smith Corporation Quote
AOS’ Margin Details
A.O. Smith’s cost of sales was $579.9 million, down 1.5% year over year. Selling, general & administrative expenses were $203.9 million, up 5.9%.
Gross profit decreased 2.6% year over year to $365.7 million. The gross margin was 38.7% compared with 38.9% in the year-ago period. Interest expenses were $7.1 million compared with $2.9 million in the year-ago quarter.
A.O. Smith’s Liquidity & Cash Flow
As of March 31, 2026, AOS’ cash and cash equivalents totaled $185.2 million compared with $174.5 million at the end of December 2025.
At the end of the first quarter, long-term debt was $574.2 million compared with $112.7 million at the end of December 2025. The increase in debt level was attributable to cash borrowed by the company under a new term loan for the acquisition of Leonard Valve.
In the first three months of 2026, cash provided by operating activities totaled $129.4 million compared with $38.7 million in the year-ago period.
AOS’ Share Repurchases
In the first three months of 2026, A.O. Smith repurchased 0.7 million shares for $51.3 million. As of first quarter-end, approximately 5.1 million shares were left to be repurchased under the share repurchase authorization.
In January 2026, AOS’ board boosted the buyback program by another 5 million shares. For 2026, it expects to repurchase shares worth approximately $200 million.
Story Continues
A.O. Smith’s 2025 Outlook
A.O. Smith has provided the sales outlook for 2026. The company expects net sales to be in the range of $3.90-$4.00 billion compared with $3.90-$4.02 billion predicted earlier.
Management currently projects adjusted earnings per share to be in the band of $3.70-$4.00, lower than $3.85-$4.15 projected previously.
AOS’ Zacks Rank and Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks from the same space are discussed below:
DXP Enterprises DXPE presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DXP Enterprises’ earnings surpassed the consensus estimate by 52.8% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for DXPE’s 2026 earnings has increased by 17.2%.
Kennametal KMT presently sports a Zacks Rank of 1. Kennametal’s earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 35.4%. In the past 60 days, the Zacks Consensus Estimate for Kennametal’s fiscal 2026 earnings has increased 9%.
Powell Industries POWL currently carries a Zacks Rank of 2. Powell’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 12.9%. In the past 60 days, the Zacks Consensus Estimate for Powell’s fiscal 2026 earnings has increased 3%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
A. O. Smith Corporation (AOS) : Free Stock Analysis Report
DXP Enterprises, Inc. (DXPE) : Free Stock Analysis Report
Kennametal Inc. (KMT) : Free Stock Analysis Report
Powell Industries, Inc. (POWL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
View Comments
- A. O. Smith Corporation Q1 2026 Earnings Call Summary
Apr 30, 2026
A. O. Smith Corporation Q1 2026 Earnings Call Summary - Moby
Strategic Performance Drivers and Market Context
Management attributed the 2% sales decline primarily to persistent consumer weakness in China and weather-related production disruptions at the Ashland City facility. North American market share in the wholesale channel has stabilized following recent challenges, while retail partnerships remain a source of competitive strength. China sales decreased 17% in local currency, driven by the expiration of government stimulus and low consumer confidence in the premium segments where the company competes. The ongoing strategic assessment of China operations has created market uncertainty and delayed certain investments, though management reports brand and pricing power remain intact. North American water treatment is undergoing a strategic pivot toward footprint optimization and brand rationalization to focus on higher-margin priority dealer channels. Operational excellence initiatives include exploring the potential of AI agents for initial applications such as order management, warranty claims processing, and technical service support.
Outlook and Strategic Assumptions
Full-year 2026 adjusted EPS guidance was revised to $3.70–$4.00, reflecting higher input costs and a more cautious outlook for the China market. Management expects a 15% year-over-year increase in steel costs and a 3% increase in total cost of goods sold due to freight, non-steel materials, and tariffs. Price increases of 4% to 7% for North American water heaters and boilers are scheduled for mid-May, with financial benefits expected to materialize in the third quarter. The outlook for U.S. commercial industry volumes was lowered to 'flat' following a DOE enforcement delay on regulatory changes, which is expected to reduce near-term pre-buy activity. Water treatment restructuring is projected to deliver $6 million to $8 million in annual savings starting in 2027, following a $20 million charge in Q2 2026.
Non-Recurring Factors and Risk Callouts
Weather-related damage at the Ashland City plant negatively impacted Q1 earnings by approximately $0.04 per share, though full-year impact is expected to be minimal due to insurance. The Leonard Valve acquisition resulted in $0.03 per share of transaction-related expenses in the first quarter. A $20 million restructuring and impairment charge related to North American water treatment is scheduled for recognition in the second quarter of 2026. Management flagged oil price volatility and diesel fuel costs as significant variables that could further impact transportation and material cost assumptions.
Story Continues
Q&A Session Highlights
Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here.
Impact of DOE commercial regulatory enforcement delay
Management explained that a one-year enforcement delay to October 2027 has created uncertainty, leading them to project less 'buy-ahead' activity from customers this year. The company is delaying some planned capacity investments until there is more certainty regarding the timing of the demand shift.
Strategic assessment and market share in China
Despite a 17% local currency sales decline, management stated they have not lost meaningful market share and are maintaining their position in a down market. The strategic review is taking longer than expected due to the challenging macro environment, but clarity on the path forward is expected within the next few months.
Margin cadence and price/cost timing for 2026
Q2 is expected to face margin pressure as incremental costs for steel and freight precede the realization of the mid-May price increases. Management projects Q2 EPS will represent approximately 25% of the full-year midpoint, with stronger performance expected in the second half as pricing takes hold.
One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.
View Comments
- A. O. Smith Misses Earnings & Sales Estimates in Q1, Lowers 26' View
Apr 30, 2026 · zacks.com
AOS misses Q1 earnings and sales estimates as China weakness drags results, prompting a lowered 2026 outlook.
- A. O. Smith Corporation (AOS) Q1 2026 Earnings Call Transcript
Apr 30, 2026 · seekingalpha.com
A. O. Smith Corporation (AOS) Q1 2026 Earnings Call Transcript
- A.O. Smith (AOS) Reports Q1 Earnings: What Key Metrics Have to Say
Apr 30, 2026
For the quarter ended March 2026, A.O. Smith (AOS) reported revenue of $945.6 million, down 1.9% over the same period last year. EPS came in at $0.85, compared to $0.95 in the year-ago quarter.
The reported revenue represents a surprise of -2.43% over the Zacks Consensus Estimate of $969.18 million. With the consensus EPS estimate being $0.94, the EPS surprise was -9.41%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how A.O. Smith performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Geographic Revenue- North America: $753.4 million compared to the $772.16 million average estimate based on five analysts. The reported number represents a change of +0.6% year over year. Geographic Revenue- Rest of World: $200.7 million versus $207.62 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -11.5% change. Geographic Revenue- Inter-segment sales: $-8.5 million versus $-9.33 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -26.1% change.
View all Key Company Metrics for A.O. Smith here>>>
Shares of A.O. Smith have returned -2.2% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
A. O. Smith Corporation (AOS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
View Comments
