A.O. Smith misses by $0.04, misses on revs; guides FY19 EPS in-line (55.81)
- Reports Q1 (Mar) earnings of $0.53 per share, $0.04 worse than the S&P Capital IQ Consensus of $0.57; revenues fell 5.1% year/year to $748.2 mln vs the $764.16 mln S&P Capital IQ Consensus.
- Sales of the North America segment were $521.8 mln, a 4% increase over the same period in 2018. Sales increased due primarily to higher volumes of boilers and water treatment products and mid-2018 water heater pricing actions related to steel and freight cost increases, which were partially offset by lower residential water heater volumes.
- First quarter sales of $232.1 mln for the Rest of World segment declined approximately 21% compared with the same quarter in 2018. In China, sales were down 18% in local currency compared with the same period in the prior year, in line with the company's previously-stated expectations.
- Co issues in-line guidance for FY19, sees EPS of $2.69-$2.75 vs. $2.71 S&P Capital IQ Consensus. Co expects both operating segments to improve significantly in the second half of the year compared with the first half of 2019.
- Co projects significantly improved second half yr/yr performance, primarily in our North America segment as a result of weakness experienced in 3Q18