A.O. Smith Q2 Earnings Beats On Strength In Water Heater Demand; Warns On Higher Steel Costs
Portfolio Pulse from Nabaparna Bhattacharya
A.O. Smith Corporation's Q2 FY23 sales slightly decreased by 1% YoY to $960.80 million, missing the consensus of $965.73 million. However, the adjusted EPS of $1.01 beat the consensus of $0.91. The company warns of higher steel costs in North America in H2 2023, which may put pressure on margins. The company's FY23 sales outlook is between $3.75 billion and $3.83 billion, with an adjusted EPS of $3.45-$3.60.
July 27, 2023 | 3:19 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
A.O. Smith's Q2 FY23 sales slightly missed consensus, but adjusted EPS beat expectations. The company warns of higher steel costs in H2 2023, which may pressure margins. The FY23 sales outlook is between $3.75 billion and $3.83 billion, with an adjusted EPS of $3.45-$3.60.
A.O. Smith's Q2 FY23 sales slightly missed consensus, but the adjusted EPS beat expectations, which could have a mixed impact on the stock. However, the company's warning of higher steel costs in H2 2023 could put pressure on margins and negatively affect the stock. The company's FY23 sales outlook is slightly positive, which could support the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100