What's Going On With Geyser Maker A.O.Smith Shares Today?
Portfolio Pulse from Lekha Gupta
A.O. Smith Corp (NYSE:AOS) reported Q4 2023 revenue of $988.1 million, a 6% increase Y/Y, surpassing consensus estimates. North American sales grew by 7%, while Rest of World sales increased by 4%. Adjusted EPS was $0.97, beating the $0.96 consensus. The company has a strong cash position and reduced debt, repurchased 4.4 million shares in 2023, and plans to repurchase $300 million worth in 2024. A dividend of $0.32 per share will be paid on February 15. FY24 sales are projected between $3.97 billion and $4.05 billion, with adjusted EPS of $3.90-$4.15. Despite positive results and outlook, AOS shares dropped by 4.09% to $78.00.
January 30, 2024 | 4:29 pm
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NEGATIVE IMPACT
A.O. Smith exceeded Q4 revenue and EPS estimates, announced a share repurchase plan, and declared a quarterly dividend. However, shares fell by 4.09%.
A.O. Smith's positive earnings report and share repurchase announcement typically would be expected to have a positive impact on the stock price. However, the share price dropped, which could be due to investors' reactions to broader market conditions or concerns not directly related to the earnings report. The short-term impact is negative despite the company's strong performance, indicating that other factors may be influencing investor sentiment.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100