A.O. Smith Corp. (AOS), while reporting higher third-quarter results, on Thursday raised its forecast for fiscal 2021 earnings and sales.
For the year, the company now expects earnings per share between $2.86 and $2.90, up 5% at the midpoint from previous guidance of $2.70 to $2.76. The prior year's earnings were $2.12 per share.
Net sales are now expected to be between $3.47 billion and $3.50 billion, an increase between 20 percent and 21 percent from last year's $2.90 billion.
The company previously expected sales growth between 17 and 18 percent.
On average, analysts polled by Thomson Reuters expect earnings of $2.76 per share for the year on sales of $3.41 billion. Analysts' estimates typically exclude special items.
Kevin Wheeler, chairman and chief executive officer, said, "With strong sales growth and solid demand for our products continuing through October and further inflation-related pricing actions effective in November, we are raising our outlook for full year 2021 sales to increase between 20 and 21% year over year, including approximately $54 million of benefit from China currency translation and excluding sales from Giant. We expect the increase in sales to drive increased profitability..."
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