A.O. Smith Reports Strong Q4 Earnings and Sales


A.O. Smith, the renowned Milwaukee provider of boilers and water-treatment equipment, has announced impressive fourth-quarter earnings and sales. The company also anticipates continued growth in both areas, driven by strong demand for water heaters in North America.

Earnings Performance

A.O. Smith witnessed a significant turnaround in its financial performance, achieving a net profit of $137.3 million, or 92 cents per share, in the fourth quarter of 2022. This marked a notable improvement compared to a loss of $120.1 million, or 78 cents per share, in the same period the previous year. (Add more details about the improvement, if available)

Excluding certain items, A.O. Smith’s earnings stood at 97 cents per share, surpassing Wall Street’s estimate of 96 cents per share.

Sales Growth

A.O. Smith experienced a 5.6% increase in sales, totaling $988.1 million. This figure exceeded Wall Street’s projected sales of $986 million.

The company’s North America sales specifically saw a robust growth of 7%, reaching $738 million. However, foreign currency translation had a slight impact on international sales, also known as “rest of world sales,” which grew by 4% to reach $260.2 million.

Outlook for 2024

Looking ahead, A.O. Smith has set ambitious targets for 2024. The company aims to achieve earnings per share ranging from $3.90 to $4.15 on both a GAAP and adjusted basis. In 2023, A.O. Smith reported earnings per share of $3.69 and adjusted earnings of $3.81 per share.

Moreover, A.O. Smith anticipates a sales increase between 3% and 5% compared to 2023 levels. This forecast translates to a sales range of $3.97 billion to $4.05 billion.

Positive Market Outlook

Chairman and Chief Executive Kevin Wheeler expressed optimism for the coming year, stating, “We enter 2024 with optimism for continued end-market demand in water heating and a rebound in boiler and water treatment volumes after 2023 corrections in end-market inventories.”

Overall, A.O. Smith is well-positioned to capitalize on the growing demand for water heaters in North America and is optimistic about its prospects in the industry.

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