Water heater manufacturer A.O. Smith Corporation (AOS) Friday released the first quarter financial statements on Friday, reporting the first quarter net profit had risen 16 percent, mainly due to a one-time revenue from the sale of its electric motor business.
The company grew net profit of $41 million from a year earlier, or 88 cents per share increased to $ 47.5 million, or $ 1.02 per share.
The latest performance includes the $16.7 million, or 36 cents per share brought by the sale of the shares in Regal Beloit. AO. Smith acquired these shares when it sold the electric motor business last year.
Excluding this item, the adjusted earnings per share is $66 cents, topping 61 cents average estimate of the analysts polled by Factset.
Revenues grew by 12% from a year earlier of $417 million to $ 469 million, flat with the analyst expectation.
The company attributed the revenue growth to Lochinvar that acquired last August, and the 18% increase in the Smith-branded products in China.
The company projects fiscal 2012 full-year earnings per share of $2.75-$2.90, higher than the previous forecast of $2.65-$2.85. Analysts on average expect the company’s annual earnings per share of $2.83.
Boosted by the good financial results, AOS stock price saw a 6.05%, or $2.69 increase Friday. AOS stock price has gained 17.6% this year.