NYSE$AOS
A O Smith Corp · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
A. O. Smith experienced a strong first quarter, driven by resilient water heater demand and lower steel costs.
A. O. Smith reported a 1% decrease in sales to $966 million, but net earnings increased by 6% to $126.9 million, resulting in record first quarter EPS of $0.84. Adjusted EPS was $0.94, excluding a non-cash impairment charge. The company raised its 2023 outlook to flat sales and adjusted EPS between $3.30 and $3.50.
- Sales decreased 1% to $966 million, with North America increasing 3% and Rest of World decreasing 14%.
- Net earnings increased 6% to $126.9 million, with EPS increasing 11% to $0.84.
- Adjusted earnings were $142.5 million, excluding a non-cash impairment charge, resulting in adjusted EPS of $0.94.
- The company raised its 2023 outlook to flat sales and adjusted EPS between $3.30 and $3.50.
Headline financials
Revenue & EPS history
A O Smith · Revenue · Quarterly
$966M
Revenue by segment
A O Smith · $972M total across 2 segments · Q1 2023
- North America$753M+3.1%77.5%
- Rest of World$219M-14.4%22.5%
Forward guidance
A. O. Smith projects flat sales and adjusted EPS between $3.30 and $3.50 for the full year 2023.
Tailwinds
- Strong start to 2023, particularly in North America water heating.
- Outperformed the market in North America water heating.
- Price cost relationship resulted in a strong operating margin.
- China's reopening is progressing as expected with sequential month-over-month demand improvement.
- Strong balance sheet and free cash flow provide liquidity for capital allocation priorities.
Headwinds
- Meaningful rise in steel index prices will translate into higher input costs.
- Higher input costs will put pressure on water heater margins in the second half of the year.
- Potential impacts from future acquisitions are excluded from guidance.
- Further softening in U.S. residential water heater demand.
- Negative impacts to the company resulting from global inflationary pressures or a potential recession.
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 2023
+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
| Quarter | Report date | Reaction (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% | — | — |
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