A.O. Smith (AOS) shares rose over 1% premarket Tuesday on the back of its latest quarterly earnings release, which saw it top consensus profit and revenue expectations.
The company posted Q4 earnings of $0.97 per share, $0.02 better than the analysts' estimate of $0.95 per share. Revenue for the quarter came in at $988 million, above the consensus estimate of $982.33 million.
For the whole of 2023, AOS reported record sales of $3.9 billion, representing an increase of 3% year-on-year. The rise in sales was primarily driven by higher water heater volume.
"For a third consecutive year, A. O. Smith delivered record sales in 2023, led by resilient North America water heater demand," said Kevin Wheeler, chairman and chief executive officer of AOS. "We achieved sales growth in China of 4% in local currency despite continued challenges in the Chinese economy."
Looking ahead, the company sees its FY24 EPS between $3.90 and $4.15 vs the $4.05 estimate. Net sales for the period are expected to be between $3.97 billion and $4.05 billion.