NYSE$AOS

A O Smith Corp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Net earnings and sales increased compared to the same quarter last year, driven by strong performance in North America and China.

A. O. Smith reported third quarter net earnings of $105.4 million, or $0.65 per share, on sales of $760.0 million. Sales were four percent higher than sales of $728.2 million reported in the same quarter of 2019. The company upgrades full year 2020 earnings guidance.

  • Third quarter net earnings were $105.4 million or $0.65 per share.
  • Sales were $760.0 million, a four percent increase compared to the same quarter in 2019.
  • North America segment sales increased by approximately six percent, driven by higher residential water heater volumes and growth in water treatment products.
  • China sales were flat compared with the same period in the prior year as higher consumer demand was offset by a higher mix of mid-price products.

Headline financials

Total Revenue

$760M

Previous: $728M+4.4%
EPS (adj)

$0.66

Previous: $0.53+24.5%
Free Cash Flow

$105M

Previous: $87.3M+20.7%
Net Income

$105M

Previous: $87.3M+20.7%
Operating Income

$150M

Previous: $126M+19.2%
Gross Profit

$297M

Previous: $284M+4.5%
Cash & Equivalents

$378M

Previous: $219M+72.2%
Total Assets

$2.97B

Previous: $3.07B-3.2%

Revenue & EPS history

A O Smith · Revenue · Quarterly

$760M

Q3 2020+4.4%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

A O Smith · $765M total across 2 segments · Q3 2020

  • North America
    $544M+5.7%
  • Rest of World
    $221M+0.5%

Forward guidance

The company is increasing its full year 2020 earnings guidance to a range between $1.91 and $1.94 per share and adjusted earnings guidance to a range between $1.95 and $1.98 per share.

Tailwinds

  • Resiliency of North America residential water heater demand.
  • Year-over-year growth in consumer demand for products in China.
  • Tailwinds behind North America water treatment product sales driven by drinking water health and safety concerns.

Headwinds

  • Uncertainty remains about the duration and long-term implications of the pandemic.
  • Impact on U.S. commercial markets from the pandemic.

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 Q3 2020

Historical avgQ3 2020

+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%

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