A. O. Smith Q1 Results Top Estimates; Lifts FY17 Forecast - Quick Facts

(RTTNews) - Water technology company A. O. Smith Corp. (AOS) reported Thursday that its first-quarter net earnings increased to $87.7 million or $0.50 per share from last year's $73.5 million or $0.41 per share.

Net sales in the quarter grew approximately 16 percent to $740.0 million from sales of $636.9 million in the same period in 2016.

On average, 12 analysts polled by Thomson Reuters expected earnings of $0.47 per share on sales of $697.61 million for the quarter. Analysts' estimates typically exclude special items.

The company noted that this is the fifth consecutive year the company has achieved record first quarter sales and earnings performance.

Sales in China grew 20 percent on a reported basis and 27 percent when excluding the impact from the stronger U.S. dollar.

Chairman and Chief Executive Officer Ajita Rajendra said, "The strength of both the U.S. water heater industry and our consumer product demand in China is encouraging. With double digit sales growth in both operating segments in the quarter, A. O. Smith is starting the year on solid footing."

Looking ahead, for fiscal 2017, the company said it has increased the midpoint of earnings per share guidance by $0.03 per share. Excluding the impact from potential acquisitions, the company now anticipates 2017 earnings to be between $2.03 and $2.09 per share. Analysts expect earnings of $2.08 per share for the year.

The company said its outlook for 2017 is positive, and that it is optimistic to grow revenues between nine and 10 percent.