A.O. Smith, a leading manufacturer of water heaters and boilers, experienced a sharp decline of 7.31% in its stock price during the pre-market trading session on Thursday. This plunge was likely triggered by the company's disappointing financial results for the fourth quarter of the fiscal year.
In its quarterly report, A.O. Smith announced an adjusted earnings per share (EPS) of $0.85, falling short of the analyst consensus estimate of $0.89. Additionally, the company's revenue for the quarter, at $912.4 million, missed expectations of $954 million.
Despite the underwhelming Q4 performance, A.O. Smith provided an outlook for the full fiscal year, projecting an EPS range of $3.6 to $3.9. While this guidance may offer some reassurance to investors, the immediate market reaction suggests concern over the company's ability to meet growth targets in the face of ongoing economic challenges.
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