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Investing.com -- Smith AO Corporation (NYSE:AOS) reported Q3 results that missed analysts' expectations and revised its earnings per share (EPS) guidance for the full year.
The company’s shares fell 0.7% in the market pre-open Tuesday.
For Q3, A.O. Smith posted EPS of $0.82, notably below the analyst expectations of $0.96. Revenue came in at $902.6 million, also missing the consensus estimate of $959.83 million.
Sales in North America reached $703.3 million, down 0.9% year-over-year, falling short of the estimated $715.2 million.
International sales were $210.3 million, down 9.9% from the previous year, also below the forecast of $221.4 million.
"As we announced in our October 11 press release, our China sales and North America water heater volumes were lower than we expected in the third quarter. Consumer demand headwinds in China and pre-buy and lead-time-driven order demand softness in North America persisted through the quarter and led to lower than expected sales and profitability," said Kevin J. Wheeler, chairman and CEO.
"While our China and North America water heater businesses were challenged in the quarter, I am pleased with the performance of other parts of our business, particularly the double-digit sales growth in commercial boilers and North America water treatment."
For FY2024, A.O. Smith revised its EPS outlook to a range of $3.70 to $3.85, compared to the previous guidance of $3.95 to $4.10, and compared to analyst expectations of $3.82.
The annual revenue forecast of $3.8 to $3.9 billion was maintained, with the consensus projection at $3.87 billion.
