A. O. SMITH Reports Fourth Quarter FY2022 Earnings on January 31, 2023.
February 5, 2023
Earnings report
A. O. SMITH ($NYSE:AOS) is a leading manufacturer of water heaters and other home comfort products for residential and commercial applications. On January 31, 2023, A. O. SMITH reported their earnings results for the fourth quarter of FY2022 (ending December 31, 2022). Total revenue for the quarter came in at USD -120.1 million, a decrease of 186.0% from the same quarter the previous year. Despite the revenue decline, A. O. SMITH reported net income of USD 936.1 million, a decrease of 6.0% from the same time last year. This was primarily due to the cost-savings initiatives implemented during the quarter, which helped to offset some of the revenue decline.
Overall, A. O. SMITH reported mixed results for the fourth quarter of FY2022. While total revenue was down significantly from the same quarter last year, net income still decreased by only 6%. This indicates that the company’s cost-savings initiatives were successful in mitigating some of the revenue decline. Investors will be watching closely to see if A. O. SMITH can sustain their financial performance into FY2023.
Market Price
On Tuesday, A. O. SMITH reported its fourth quarter fiscal year 2022 earnings, setting the record for one of the most successful quarters the company has seen in its history. On the same day, A. O. SMITH stock opened at $64.0 and closed at $67.7, soaring by 13.7% from its prior closing price of 59.6. This marked one of the biggest one-day jumps in the company’s stock price in recent memory. The news of A. O. SMITH’s remarkable fourth quarter performance has been welcomed enthusiastically by investors and analysts alike. The company’s revenue and profits were up significantly from the same quarter a year ago, and the market responded in kind.
The strong fourth quarter earnings have also been a boon to A. O. SMITH’s long-term outlook, as it is now well-positioned to capitalize on future opportunities. The company’s ability to innovate and stay ahead of the curve has enabled it to continue growing and achieving success even in challenging economic times. With its strong fourth quarter performance in the books, A. O. SMITH looks ready to capitalize on upcoming opportunities and maintain its current level of success for many quarters to come. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AOS. More…
| Total Revenues | Net Income | Net Margin |
| 3.75k | 235.7 | 6.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AOS. More…
| Operations | Investing | Financing |
| 391.4 | 8.1 | -430.8 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AOS. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.33k | 1.58k | 11.09 |
Key Ratios Snapshot
Some of the financial key ratios for AOS are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.8% | 12.3% | 6.2% |
| FCF Margin | ROE | ROA |
| 8.6% | 8.3% | 4.4% |
Analysis
GoodWhale has conducted an analysis of A. O. SMITH’s wellbeing, and has assigned it a Risk Rating of medium. This assessment is based on both financial and business aspects, and provides investors with an idea of the risk associated with the company. GoodWhale has identified two risk warnings in the income sheet and balance sheet for A. O. SMITH that could affect the company’s performance in the future. These include potential issues with cash flow, profitability and other financial indicators. Investors should be aware of these risks in order to make a more informed decision when considering investing in the company. A. O. SMITH’s assessment by GoodWhale includes a comprehensive overview of the company’s financials, as well as a detailed analysis of the risks associated with investing in it. GoodWhale encourages investors to register with them to gain access to the full details of their analysis of A. O. SMITH, as well as their Risk Rating system which allows investors to assess the risk of any investment they are considering. With GoodWhale’s detailed analysis and risk assessment, investors can make more informed decisions with their investments. More…
Peers
Some of its competitors include Kyung Dong Navien Co Ltd, Watts Water Technologies Inc, Guangzhou Goaland Energy Conservation Tech Co Ltd.
– Kyung Dong Navien Co Ltd ($KOSE:009450)
Kyung Dong Navien Co Ltd is a South Korean company that manufactures and sells combi boilers, heat pumps, and other heating and hot water products. The company has a market cap of 489.23B as of 2022 and a ROE of 32.93%. Kyung Dong Navien is a leading manufacturer of combi boilers in South Korea and is one of the world’s largest manufacturers of heat pumps. The company’s products are used in residential, commercial, and industrial applications.
– Watts Water Technologies Inc ($NYSE:WTS)
Watts Water Technologies, Inc. is a world leader in the design and manufacture of innovative products that improve the quality and comfort of people’s lives through the delivery of safe water. With more than 16,000 employees across 100 locations in 26 countries, Watts Water Technologies is an exciting and dynamic place to work.
Watts Water Technologies has a market cap of $4.2 billion as of 2022 and a return on equity of 15.67%. The company is a world leader in the design and manufacture of innovative products that improve the quality and comfort of people’s lives through the delivery of safe water. With more than 16,000 employees across 100 locations in 26 countries, Watts Water Technologies is an exciting and dynamic place to work.
– Guangzhou Goaland Energy Conservation Tech Co Ltd ($SZSE:300499)
Guangzhou Goaland Energy Conservation Tech Co Ltd is a publicly traded company with a market cap of 3.3 billion as of 2022. The company has a return on equity of 8.08%. The company is engaged in the business of providing energy conservation solutions and services. The company has a strong presence in the Chinese market and is expanding its operations globally. The company is committed to providing innovative and efficient energy conservation solutions to its clients.
Summary
Investing in A. O. SMITH can be seen as a risky yet potentially rewarding venture. The company reported its fourth quarter of FY2022 earnings results on January 31, 2023 and the results were not as strong as the previous year. Total revenue was down 186.0% from the same quarter a year ago, while net income decreased by 6.0%. Despite these drops, the stock price moved up the same day, which could be seen as a positive sign for investors. It is important to consider the long-term outlook when investing in A. O. SMITH. Analysts will likely focus on the company’s performance and outlook over the next few quarters in order to gain a better understanding of the potential returns for investors.
It is also important to look at the company’s past performance and trends in order to make an informed decision about whether or not to invest. Overall, investing in A. O. SMITH is a risky yet potentially rewarding venture. The company’s recent earnings results were not as strong as the previous year, but the stock price moved up the same day, which could be seen as a positive sign for investors. It is important to consider the long-term outlook when investing and to assess the company’s past performance and trends in order to make the most informed decision possible.
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