A. O. SMITH Reports Q4 2022 Earnings Results for the Period Ending December 31, 2022
February 5, 2023
Earnings report
On January 31, 2023, A. O. Smith ($NYSE:AOS) reported their fiscal year 2022 fourth quarter earnings results for the period ending December 31, 2022. A. O. Smith is a leading global water technology and services provider, delivering innovative solutions to residential, commercial and industrial customers. The reported results showed that total revenue for the quarter was USD -120.1 million, a decrease of 186.0% from the same quarter the prior year. Net income for the quarter was USD 936.1 million, a decrease of 6.0% from the same quarter the prior year.
This was mainly due to higher expenses related to research and development, as well as marketing and administrative costs. Overall, A. O. Smith reported strong earnings results for their FY2022 Q4 period, despite the challenging environment caused by the pandemic. The company’s strong financial results demonstrate its commitment to delivering innovative solutions to their customers and driving long-term value creation for stakeholders.
Market Price
The company’s stock opened at $64.0 and closed at $67.7, a soar of 13.7% from its last closing price of 59.6. The company’s strong performance was mainly driven by increased demand for its products, as well as higher prices due to cost inflation.
Additionally, A. O. SMITH’s improved efficiency and cost control measures helped to offset the impacts of higher raw material costs and increased selling, general and administrative expenses. Overall, A. O. SMITH’s Q4 2022 results were well received by the market and investors have responded positively, sending the company’s stock soaring by 13.7% from its last closing price. Looking forward, A. O. SMITH is optimistic about its prospects and expects to continue to drive growth in the coming quarters. 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 financials and determined that the company is a medium risk investment. This assessment is based on their Risk Rating, which takes into account both financial and business aspects. GoodWhale has identified two risk warnings in the income sheet and balance sheet of A. O. SMITH. These warnings are available to registered users who wish to view the full report and understand more about the company’s investment risk. The Risk Rating of A. O. SMITH suggests that investors should conduct their own research and due diligence before investing. This includes looking into the company’s financials and determining the level of risk associated with the company. It is important to note that the Risk Rating is an indicative assessment and should not be seen as a definitive assessment of the company’s financial health or investment potential. Investors should also consider other factors such as the company’s management team, competitive landscape and potential growth opportunities before investing. As with any investment decision, investors should always do their own research before committing to any company or venture. A. O. SMITH’s Risk Rating is a useful tool to help investors make an informed decision but should not be seen as a guarantee of success. 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
A. O. SMITH has reported their Q4 earnings results for the period ending December 31 2022, with total revenue of USD -120.1 million and net income of USD 936.1 million. This represents a decrease of 186.0 % and 6.0 % respectively, compared to the same quarter the prior year. Despite the decrease in revenue and net income, the stock price moved up the same day. Investors looking to invest in A. O. SMITH should consider the company’s financial performance, as well as its overall outlook and potential for growth. While the decrease in revenue and net income could be a cause for concern, it is important to note that the company has been able to maintain a strong balance sheet and generate positive cash flows.
Additionally, the company is well-positioned for future growth, as it has established partnerships with several leading technology companies and continues to expand its product portfolio. Overall, investors should carefully analyze A.O. Smith’s financials and potential for long-term growth before making any investment decisions. While the company’s performance in the past quarter may be a cause for concern, its future outlook suggests that it could be a wise investment choice.
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