Water heating equipment maker A. O. Smith Corp. (AOS: Quote) reported second-quarter net earnings of $35.0 million or $0.75 per share, down from last year's $50.3 million or $1.08 per share.
The company noted that the prior year earnings from continuing operations included several non-operating items resulting in a net pre-tax gain of $8.3 million, or $.11 per share. Excluding these items from last year results, earnings per share from continuing operations for the recent quarter increased 47 percent over the same period last year.
On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.67 per share. Analysts' estimates typically exclude special items.
Net sales grew to $484.2 million from $405.3 million in the prior-year quarter. Analysts estimated revenues of $475.25 million.
Growth in net sales was driven by contributions from Lochinvar, which was acquired in August 2011, double digit growth of A. O. Smith branded sales in China and higher U.S. residential and commercial volumes ahead of a previously announced price increase effective in June.
Looking forward, due to the historically seasonally strong second half of the year which the company expects from Lochinvar's boilers for space heating, the company will raise the bottom of its estimate of 2012 earnings to a range of $2.80 to $2.90 per share. Analysts expect the company to earn $2.88 per share for full year.
Previously, the company anticipated earnings to be in a range of $2.75 and $2.90 per share.
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by RTT Staff Writer
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