Stock Story -
Water heating and treatment solutions company A.O. Smith (NYSE:AOS) will be reporting results tomorrow before market hours. Here's what to look for.
A. O. Smith missed analysts' revenue expectations by 1.7% last quarter, reporting revenues of $978.8 million, up 1.3% year on year. It was a weak quarter for the company, with a miss of analysts' organic revenue estimates.
Is A. O. Smith a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting A. O. Smith's revenue to grow 4.1% year on year to $999.8 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $1.06 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. A. O. Smith has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1.2% on average.
Looking at A. O. Smith's peers in the building products segment, only Apogee has reported results so far. It met analysts' revenue estimates, posting year-on-year sales declines of 8.3%. The stock traded up 6.6% on the results.
Read the full analysis of Apogee's results on StockStory. There has been positive sentiment among investors in the building products segment, with share prices up 4.5% on average over the last month. A. O. Smith is up 5% during the same time and is heading into earnings with an average analyst price target of $89.1 (compared to the current share price of $88.61).
![Earnings To Watch: A. O. Smith (AOS) Reports Q2 Results Tomorrow](https://d68-invdn-com.investing.com/content/pica8c33453950e97134a8aed5b52819391.jpeg)