A.O. Smith Q4 Earnings Miss Estimates, Stock Lags

A.O. Smith Corporation reported disappointing fourth-quarter 2024 results, with adjusted earnings of $0.85 per share missing the Zacks Consensus Estimate of $0.89, marking a 12% decline from the previous year. The company's net sales fell 8% year-over-year to $912.4 million, below the expected $952 million, primarily due to reduced water heater demand in North America and China. A.O. Smith's forecast for 2025 adjusted profit is between $3.60 and $3.90 per share, falling short of analysts' estimates of $4.03. The company provided a revenue guidance of $3.85 billion for 2025, reflecting only a modest growth of 0.8%, further missing analysts' expectations. Despite these challenges, A.O. Smith's stock has seen a slight increase since the start of the year, though it still trails behind the S&P 500's performance.