Stryker shares tumble despite strong Q2 results and raised guidance
MILWAUKEE - A. O. Smith Corporation (NYSE:AOS), a global manufacturer of water heating equipment and water treatment products, announced today that its directors have declared a regular quarterly cash dividend. The dividend, set at $.34 per share, representing a 2.24% yield, will be distributed to holders of the company's Common Stock and Class A Common Stock. According to InvestingPro data, AOS has maintained dividend payments for 17 consecutive years, with 16 straight years of dividend increases.
Eligible shareholders must be on record as of Wednesday, April 30, 2025, to receive the dividend, which is scheduled for payment on Thursday, May 15. This announcement follows A. O. Smith's established practice of returning value to its shareholders through regular dividend payouts. The company's strong financial position is evidenced by its healthy balance sheet, with more cash than debt and sufficient cash flows to cover interest payments.
A. O. Smith, headquartered in Milwaukee, Wisconsin, is recognized for integrating innovative technology and energy-efficient solutions into its products, which are marketed globally. As a listed entity on the New York Stock Exchange, the company has carved out a position as one of the leading manufacturers in its industry.
The information regarding the dividend declaration is based on a press release statement from A. O. Smith Corporation.
In other recent news, AO Smith Corporation reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of $0.85, which fell short of analysts' expectations of $0.90. The company's revenue also missed forecasts, coming in at $912.4 million compared to the anticipated $952.28 million. Full-year 2024 sales decreased by 1% year-over-year to $3.8 billion. Despite these challenges, AO Smith returned $496 million to shareholders through dividends and share repurchases. The company is focusing on product innovation and market expansion, particularly in India, while facing economic challenges in China.
DA Davidson analyst Matt Summerville adjusted his financial outlook for AO Smith, reducing the price target to $75 from $80 while maintaining a neutral rating. Concerns were raised over the company's North American and Rest of World segments, particularly in China, where conditions are expected to remain challenging. Despite the company's balance sheet flexibility, the analyst expressed skepticism regarding significant growth due to ongoing market softness. The revised price target reflects these concerns and the neutral outlook on the stock's future trajectory.
In the wake of AO Smith's earnings release, DA Davidson maintained a Neutral rating with a steady price target of $80.00 before the revision. The earnings miss was attributed to weaker water heater sales in North America, although better results were seen in the Rest of World segment. Initial revenue and EPS guidance for 2025 were noted to be below both DA Davidson's projections and the consensus, with anticipated flat water heater volumes in North America and reduced sales in China.
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