Loading...
•
Sep 30, 2022
A O Smith Q3 2022 Earnings Report
A. O. Smith's Q3 2022 performance was affected by residential water heater de-stocking, partially offset by pricing actions and commercial water heater demand.
Key Takeaways
A. O. Smith reported a 4% decrease in net sales to $874.2 million, primarily due to residential water heater de-stocking. Net earnings decreased by 17% to $109.8 million, with EPS decreasing by 13% to $0.71. The company reaffirmed its revised 2022 EPS guidance of $1.29 to $1.39 and adjusted EPS guidance of $3.05 to $3.15.
Net sales decreased by 4% to $874.2 million due to residential water heater de-stocking.
Net earnings decreased by 17% to $109.8 million.
Earnings per share decreased by 13% to $0.71.
The company reaffirmed revised 2022 EPS guidance of $1.29 to $1.39 and adjusted EPS guidance of $3.05 to $3.15.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company lowered its sales outlook for 2022 to an increase of between 5% and 7% year-over-year, including approximately $100 million from Giant. The company also lowered its full year 2022 EPS outlook to be between $1.29 and $1.39 and its adjusted EPS outlook to be between $3.05 and $3.15, an increase over 2021 of 5% at the mid-point.
Positive Outlook
- Normalization of North America residential industry volumes is expected to persist through the remainder of 2022.
- Improved production efficiency is expected in the fourth quarter.
- Continued strength in the rest of the company's portfolio is expected to drive sequential earnings improvement.
- Supply chain improvements, particularly in the commercial business, have been realized.
- Manufacturing has been adjusted to reflect lower North America industry residential water heater volumes.
Challenges Ahead
- Lower North America residential industry volumes are expected to persist through the remainder of 2022.
- COVID-19-related shutdowns in China are assumed to remain at current levels throughout the rest of the year.
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
Loading earnings performance data...
Loading earnings reaction data...