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Dec 31, 2023
A O Smith Q4 2023 Earnings Report
A. O. Smith reported record sales and earnings, driven by resilient North America water heater demand and growth in China, with a positive outlook for 2024.
Key Takeaways
A. O. Smith delivered record sales for the third consecutive year, driven by strong demand in North America and growth in China. The company's Q4 performance showed significant increases in net earnings and adjusted earnings per share, contributing to a positive full-year outlook.
Record sales driven by resilient North America water heater demand.
Sales growth in China of 4% in local currency despite economic challenges.
Adjusted segment earnings increased due to higher water heater volumes.
Company expects sales to increase between 3% and 5% year-over-year in 2024.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
A. O. Smith projects growth in both sales and earnings for 2024, with optimism for continued end-market demand in North America and stability in China, as well as continued growth in India.
Positive Outlook
- Continued end-market demand in North America for water heating.
- Rebound in boiler and water treatment volumes after 2023 corrections.
- Overall growth with stability in China.
- Continued mid-teens growth in India.
- Strong balance sheet and free cash flow.
Challenges Ahead
- Potential impacts from future acquisitions are excluded from guidance.
- Chinese economy continues to work through its challenges.
- Softening in U.S. residential water heater demand.
- Global inflationary pressures or a potential recession.
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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