While providing preliminary third-quarter results on Thursday, A.O. Smith Corp. (AOS) said its earnings for the quarter declined 13% to $0.71 per share from last year's $0.82 per share. Adjusted earnings were $0.69 per share, compared to $0.81 per share for the year-ago quarter.
Net sales for the quarter decreased 4% to $874.2 million from $914.6 million in the same quarter last year, as pricing benefits were more than offset by greater than anticipated North America residential water heater channel inventory de-stocking.
On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.88 per share on sales of $976.10 million for the quarter. Analysts' estimates typically exclude special items.
Looking ahead to fiscal 2022, the company now projects earnings in a range of $1.29 to $1.39 per share adjusted earnings in a range of $3.05 to $3.15 per share on net sales between $3.715 billion and $3.785 billion.
Previously, the company expected earnings in the range of $1.56 to $1.76 per share adjusted earnings in the range of $3.35 to $3.55 per share on net sales between $3.96 billion and $4.04 billion.
The Street is looking for earnings of $3.43 per share on sales of $3.96 billion for the year.
The Company said its guidance excludes the potential impacts from future acquisitions and assumes the Covid-19-related shutdowns in China remain at current levels throughout the rest of the year.
The Company's board of directors also approved a 7% increase in the dividend rate to $0.30 per share, payable on November 15 to shareholders of record October 31, 2022. The Company has increased its dividend each year for more than 25 years.
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