Shares of water heater maker A. O. Smith (NYSE: AOS) rose 14% in early trading today. Although it pulled back a little from that peak, at 11 a.m. EST the stock was still higher by about 12%. The best part of the gain, however, is that it was driven by earnings news, not some Wall Street craze (the so-called short squeeze ) that has enthralled investors, news media, and now even politicians.
Analysts had been expecting A. O. Smith to post earnings of $0.58 per share in the fourth quarter of 2020. However, when the final tally came in, the number was $0.74 per share, a material bottom-line beat. On the top line, Wall Street was projecting revenue of roughly $770 million, with A. O. Smith reporting $834 million, another solid beat. For the full year, the industrial company earned $2.12 per share on revenue of about $2.9 billion. Investors were pleased with the results and pushed the stock higher on the news.
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Why A. O. Smith Stock Rose as Much as 14% at the Open Today