A.O. Smith (NYSE: AOS) reported Q4 EPS of $0.60, $0.04 better than the analyst estimate of $0.56. Revenue for the quarter came in at $768.6 million versus the consensus estimate of $767.45 million.

• Net earnings of $296.5 million or $1.70 per share were lower than 2016 net earnings of $326.5 million or $1.85 per share. The decrease in earnings was due to estimated one-time charges associated with U.S. Tax Reform, totaling $81.8 million or $.47 per share. Adjusted net earnings of $378.3 million or $2.17 per share, which excluded the one-time U.S. Tax Reform-related charges, increased 16 percent compared with net earnings of $326.5 million, or $1.85 per share, the previous year.
• In the fourth quarter, the company earned $22.7 million or $.13 per share on sales of $768.6 million. Fourth quarter 2017 adjusted net earnings were $104.5 million or $.60 per share and excluded $81.8 million or $.47 per share of one-time charges associated with U.S. Tax Reform. Net earnings for the same three-month period in 2016 were $82.7 million or $.47 per share on $698.1 million of sales.

GUIDANCE:

A.O. Smith sees FY2018 EPS of $2.50-$2.58, versus the consensus of $2.43.

Outlook for 2018

"2017 was another successful year for A. O. Smith driven by strong sales growth and global performance," Rajendra observed. "We were also honored to join the S&P 500 index in July 2017, which was a significant milestone in our company\'s rich history."

"We believe our growth drivers are intact and that our replacement demand remains substantial, which leads us to expect 2018 earnings to be between $2.50 and $2.58 per share. Our guidance includes the benefit related to our lower projected tax rate under U.S. Tax Reform. The midpoint of our 2018 earnings guidance represents a 17 percent increase over 2017 adjusted earnings per share," Rajendra concluded.

For earnings history and earnings-related data on A.O. Smith (AOS) click here.