A.O. Smith's stock fell sharply by 5.09% during Thursday's intraday session following the release of its disappointing first-quarter financial results.
The water technology company reported Q1 earnings per share of $0.85, missing the FactSet consensus estimate of $0.94. Revenue of $945.6 million also fell short of the $977.7 million analyst expectation, declining 1.9% year-over-year. Concurrently, the company lowered its full-year 2026 adjusted EPS guidance to a range of $3.70 to $4.00, down from its previous outlook of $3.85 to $4.15 and below the consensus estimate of $3.97.
Management cited challenging conditions in China, where weak consumer demand led to a 17% local currency sales decline in its Rest of World segment, and weather-related production disruptions in North America as key factors behind the underwhelming results and reduced forecast.