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Sep 30, 2020
A O Smith Q3 2020 Earnings Report
Net earnings and sales increased compared to the same quarter last year, driven by strong performance in North America and China.
Key Takeaways
A. O. Smith reported third quarter net earnings of $105.4 million, or $0.65 per share, on sales of $760.0 million. Sales were four percent higher than sales of $728.2 million reported in the same quarter of 2019. The company upgrades full year 2020 earnings guidance.
Third quarter net earnings were $105.4 million or $0.65 per share.
Sales were $760.0 million, a four percent increase compared to the same quarter in 2019.
North America segment sales increased by approximately six percent, driven by higher residential water heater volumes and growth in water treatment products.
China sales were flat compared with the same period in the prior year as higher consumer demand was offset by a higher mix of mid-price products.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company is increasing its full year 2020 earnings guidance to a range between $1.91 and $1.94 per share and adjusted earnings guidance to a range between $1.95 and $1.98 per share.
Positive Outlook
- Resiliency of North America residential water heater demand.
- Year-over-year growth in consumer demand for products in China.
- Tailwinds behind North America water treatment product sales driven by drinking water health and safety concerns.
Challenges Ahead
- Uncertainty remains about the duration and long-term implications of the pandemic.
- Impact on U.S. commercial markets from the pandemic.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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