Mar 31, 2021

A O Smith Q1 2021 Earnings Report

A. O. Smith reported first quarter results with record earnings per share and a 21 percent increase in sales.

Key Takeaways

A. O. Smith Corporation announced its first quarter 2021 results, featuring record earnings per share and a 21% increase in sales, driven by solid execution despite pandemic and weather-related challenges and rising material costs.

Total sales of $769.0 million, an increase of 21 percent compared with Q1 2020

Net earnings of $97.7 million, an increase of 89 percent compared with Q1 2020

Record Q1 EPS of $0.60, an increase of 88 percent compared with Q1 2020

Sales growth between 14 and 15 percent, upgraded from 10 percent growth announced in January 2021

Total Revenue
$769M
Previous year: $637M
+20.7%
EPS
$0.6
Previous year: $0.32
+87.5%
Gross Profit
$289M
Previous year: $240M
+20.5%
Cash and Equivalents
$579M
Previous year: $416M
+39.0%
Total Assets
$3.11B
Previous year: $2.98B
+4.2%

A O Smith

A O Smith

A O Smith Revenue by Segment

Forward Guidance

A. O. Smith is upgrading its full-year 2021 earnings guidance by six percent from its previous guidance to a range between $2.55 and $2.65 per share.

Positive Outlook

  • Solid demand for boiler products continued in April.
  • Solid demand for water treatment products continued in April.
  • Solid demand for China products continued in April.

Challenges Ahead

  • Rapidly-rising material costs
  • Continued need to expedite freight to overcome supplier shipping and production delays
  • Continued headwinds in supply chain
  • Continued headwinds in logistics
  • Weather-related plant closures

Revenue & Expenses

Visualization of income flow from segment revenue to net income