NYSE$AOS

A O Smith Corp · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported strong first quarter performance driven by sales increase.

A. O. Smith reported a strong first quarter with sales of $978 million, a 27% increase year-over-year, and net earnings of $119.8 million, a 23% increase year-over-year. EPS increased by 27% to $0.76.

  • Sales of $978 million, an increase of 27% due primarily to inflation-related pricing actions
  • Net earnings of $119.8 million, an increase of 23%
  • Earnings per share (“EPS”) of $0.76, an increase of 27%
  • Adjusted earnings of $122.0 million and adjusted EPS of $0.77

Headline financials

Total Revenue

$978M

Previous: $769M+27.1%
EPS (adj)

$0.77

Previous: $0.60+28.3%
Free Cash Flow

$120M

Previous: $97.7M+22.6%
Net Income

$120M

Previous: $97.7M+22.6%
Operating Income

$177M

Previous: $142M+24.1%
Gross Profit

$342M

Previous: $289M+18.4%
Cash & Equivalents

$406M

Previous: $579M-29.9%
Total Assets

$3.43B

Previous: $3.11B+10.6%

Revenue & EPS history

A O Smith · Revenue · Quarterly

$978M

Q1 2022+27.1%vs Q1 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

A O Smith · $986M total across 2 segments · Q1 2022

  • North America
    $730M+32.0%
  • Rest of World
    $256M+15.2%

Forward guidance

The Company’s guidance excludes the potential impacts from future acquisitions and assumes the COVID-19 related shutdowns in China subside during the second quarter of 2022 and do not significantly impact our operations or our employees, customers or suppliers. The company expects sales to increase between 14% and 16% year-over-year. We anticipate the expected increase in sales to drive increased profitability and expect our full year 2022 EPS to be between $1.56 and $1.76 and adjusted EPS to be between $3.35 and $3.55.

Tailwinds

  • Expect to realize the full benefit of 2021 price increases
  • Expect sales to increase between 14% and 16% year-over-year
  • Anticipate the expected increase in sales to drive increased profitability
  • Expect full year 2022 EPS to be between $1.56 and $1.76
  • Expect adjusted EPS to be between $3.35 and $3.55

Headwinds

  • Continue to navigate the challenges of material cost increases
  • Continue to navigate supply chain volatility
  • COVID-19’s potential impacts on our production in China
  • COVID-19’s potential impacts on our suppliers in China
  • COVID-19’s potential impacts on our customers in China

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+1.1%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+1.8%

Avg return

30 days after

59%

40 / 68 earnings

Positive

+17.5%

Q4 2022

Best reaction

-9.7%

Q2 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.9%-7.5%-10.9%
Q4 2025+5.9%+9.9%+12.2%
Q3 2025-2.6%-3.8%-3.3%
Q1 2025+3.5%+5.7%-0.1%
Q4 2024-2.8%-5.1%-4.0%
Q3 2024-1.7%-2.2%-7.2%
Q2 2024-9.1%-4.9%-8.6%
Q1 2024-4.4%-4.8%-2.6%
Q4 2023-4.9%-4.1%+1.5%
Q3 2023+4.0%+7.0%+16.6%
Q2 2023-3.8%-3.3%-7.1%
Q1 2023+1.2%+3.4%-1.2%
Q4 2022+17.5%+15.9%+13.6%
Q3 2022+4.7%+5.1%+19.1%
Q2 2022+4.5%-0.1%-3.5%
Q1 2022-7.1%-6.0%-2.7%
Q4 2021+1.0%+1.1%-7.1%
Q3 2021+13.7%+22.0%+26.1%
Q2 2021+1.3%+3.2%+4.3%
Q1 2021+1.8%+7.5%+6.8%
Q4 2020+2.1%+7.9%+11.6%
Q3 2020+0.4%+3.6%+10.9%
Q2 2020-9.7%-10.0%-7.4%
Q1 2020+4.0%+6.7%+20.5%
Q4 2019+1.1%-2.6%-8.4%
Q3 2019-1.9%-2.1%-5.1%
Q2 2019+3.7%-0.2%+5.3%
Q1 2019-5.9%-3.9%-26.2%
Q4 2018-0.8%-0.1%+7.7%
Q3 2018+7.7%+13.7%+10.8%
Q2 2018-0.3%-1.6%-2.0%
Q1 2018+0.9%-1.2%+3.8%
Q4 2017-0.1%-3.3%-7.1%
Q3 2017-3.6%-4.4%-2.2%
Q2 2017-2.0%-2.7%-2.0%
Q1 2017+1.7%+0.5%+2.1%
Q4 2016+1.9%+1.9%+3.6%
Q3 2016-3.9%-3.4%+5.3%
Q2 2016+5.6%+4.7%+7.6%
Q1 2016-3.4%
Q4 2015+2.8%
Q3 2015+2.8%
Q2 2015+5.5%
Q1 2015+0.6%
Q4 2014+6.3%
Q3 2014+3.8%
Q2 2014+6.2%
Q1 2014+1.0%
Q4 2013-2.8%
Q3 2013+9.9%
Q2 2013+2.3%
Q1 2013+6.9%
Q4 2012+3.7%
Q3 2012+0.5%
Q2 2012+4.6%
Q1 2012+2.4%
Q4 2011-0.7%
Q3 2011-4.7%
Q2 2011-2.2%
Q1 2011-0.7%
Q1 2010-0.7%
Q4 2010+2.2%
Q4 2008+2.2%
Q3 2010+4.4%
Q3 2009+4.4%
Q2 2009+0.0%
Q4 2009+0.0%
Q2 2010+0.0%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro