A.O. Smith raises FY23 adjusted EPS view to $3.45-$3.60 from $3.30-$3.50

Consensus $3.50. Raises FY23 revenue view to $3.75B-$3.83B from $3.68B-$3.83B, consensus $3.78B. “We are very pleased with our team’s execution in the first half of the year, in particular, our margin performance. We will face higher steel costs in North America in the back half of 2023; therefore, we will see some margin pressure. However, our strong results in the second quarter, resilience in North America water heater demand and our current view of our price cost relationship give us confidence to raise our full year outlook,” stated Wheeler. “Our revised outlook for the full year 2023 projects our sales to be flat, to up 2%, compared to last year. We raised our expected full year adjusted EPS to be between $3.45 and $3.60, a 12% year-over-year increase at the mid-point.”