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Dec 31, 2020
A O Smith Q4 2020 Earnings Report
Reported earnings of $0.74 per share, supported by record fourth quarter sales and provided 2021 guidance.
Key Takeaways
A. O. Smith reported record fourth-quarter sales of $834.5 million, an 11% increase compared to the previous year. Net earnings for the quarter were $120.0 million, or $0.74 per share, a 31% increase. The company provided full-year 2021 earnings guidance in a range between $2.40 and $2.50 per share.
Record fourth quarter sales of $834.5 million, up approximately 11 percent compared with the same period in 2019.
Net earnings of $120.0 million, or $0.74 per share, approximately 31 percent higher than the fourth quarter of 2019.
North America water treatment sales organically grew 14 percent in 2020.
U.S. residential industry shipped a record number of tank and tankless water heaters in 2020, exceeding 10 million units.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Full-year 2021 earnings guidance in a range between $2.40 and $2.50 per share.
Positive Outlook
- Resiliency of North America water heater replacement demand
- Progressively improving 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
- Ample liquidity and flexibility to meet the needs of business
- Ability to return cash to shareholders
Challenges Ahead
- Uncertainty about the duration and long-term implications of the pandemic
- Impact on the U.S. commercial construction market
- Conditions of business environment and those of suppliers and customers are similar throughout 2021 to what was experienced in recent months
- Conditions do not deteriorate as a result of further restrictions or shutdowns
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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